Bond Market Review (Monday,08/04)

Government Debt Securities (SUN) strengthened during yesterday’s trading session. According to data from PHEI, the yield on the 5-year SUN Benchmark (FR0104) fell by 9 basis points (bps) to 6.08%, and the yield on the 10-year SUN Benchmark (FR0103) declined by 8 bps to 6.48%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) also fell by 9 bps to 6.49%. The 10-year yield curve level is approaching the lower bound of our weekly estimated range of 6.48%–6.68%.

The outright transaction volume for Government Securities (SBN) reached Rp39.0 trillion yesterday, higher than the previous day’s volume of Rp27.0 trillion. FR0103 and FR0104 were the two most actively traded series in the secondary market, with transaction volumes of Rp5.6 trillion and Rp4.4 trillion, respectively. Meanwhile, outright corporate bond transactions totaled Rp5.2 trillion.

Bloomberg data showed that the Rupiah appreciated against the US Dollar by 0.68%, moving from Rp16,513/US$ on Friday to Rp16,401/US$ yesterday.

Bond Market Preview (Tuesday,08/05)

Global indicators suggested a neutral sentiment. The 5-year US Treasury (UST) yield curve declined by 2 bps to 3.75%, while the 10-year UST yield curve fell slightly by 1 bp to 4.22%. Meanwhile, Indonesia’s 5-year Credit Default Swap (CDS) held steady at 75 bps.

Considering the above market conditions, we see the potential for increased price volatility in Rupiah-denominated SBN instruments. Based on yield curve valuation, we expect the following bonds to be attractive to investors: FR0084, FR0042, FR0096, and FR0100.

Kindly find the link to our Fixed Income Daily Market View for August 5, 2025 provided below this message. Thank you and best regards!

IND

https://research.bnisekuritas.co.id/doc-view?z=dbf76e73-bf25-4f15-be19-29a5e07f0a27

ENG

https://research.bnisekuritas.co.id/doc-view?z=0cc5a903-3868-40a5-a339-aa6725abaa1a