Bond Market Review (Tuesday,05/26)

Prices of Government Debt Securities (SUN) closed weaker in Tuesday’s trading session. PHEI data showed that the yield on the 5-year SUN benchmark (FR0109) increased by 7 basis points (bps) to 6.68%, while the yield on the 10-year SUN benchmark (FR0108) rose by 3 bps to 6.66%. According to Bloomberg data, the 10-year SUN yield curve (GIDN10YR) increased by 3 bps to 6.71%. The 10-year yield remains within our weekly estimated range for this week of 6.65%–6.92%.

Outright transaction volume in Government Securities (SBN) reached Rp47.2 trillion on Tuesday, higher than the previous day’s volume of Rp17.7 trillion. FR0109 and PBS032 were the two most actively traded series in the secondary market, with transaction volumes of Rp14.1 trillion and Rp7.1 trillion, respectively. Meanwhile, outright transaction volume for corporate bonds totaled Rp8.2 trillion.

DJPPR data showed that total incoming bids at yesterday’s SUN auction reached Rp57.3 trillion, higher than the previous SUN auction on 12 May, which recorded Rp51.4 trillion. From the series offered, the Government set the total amount awarded at Rp36.9 trillion, slightly above the indicative target of Rp36.0 trillion.

Bloomberg data showed that the Rupiah weakened by 0.29% against the US Dollar, moving from Rp17,744/US$ on Monday to Rp17,796/US$ on Tuesday. Meanwhile, the 5-year and 10-year US Treasury (UST) yields declined by 8 bps and 6 bps, respectively, to 4.19% and 4.50%. Indonesia’s 5-year Credit Default Swap (CDS) also declined by 1 bp to 91 bps.

Bond Market Preview (Friday,05/29)

Indonesia’s bond market was closed on 27–28 May in observance of Eid al-Adha. During the holiday period, Bloomberg data showed that the Rupiah weakened by 0.28% against the US Dollar to Rp17,846/US$ as of Thursday. Meanwhile, the 5-year and 10-year UST yields declined by a further 4 bps and 5 bps, respectively, to 4.15% and 4.45%. Indonesia’s 5-year CDS also declined by another 1 bp to 90 bps.

Taking the above factors into account, we expect Rupiah-denominated SUN yields to remain sensitive to global developments and domestic liquidity conditions. Based on yield-curve valuation, we view the following bonds as attractive for investors: FR0087, FR0109, FR0073, FR0091, and FR0065.

Kindly find the link to our Fixed Income Daily Market View for May 29, 2026 provided below this message. Thank you and best regards!

IND

https://research.bnisekuritas.co.id/doc-view?z=2295951f-647a-4850-9c05-ea1e42316d8b

ENG

https://research.bnisekuritas.co.id/doc-view?z=24986d36-003e-4fdd-8e0c-4dd8801abcd5