Bond Market Review (Wednesday,05/06)
Prices of Government Debt Securities (SUN) closed stronger in yesterday’s trading session. PHEI data showed that the yield on the 5-year SUN benchmark (FR0109) declined by 10 basis points (bps) to 6.69%, while the yield on the 10-year SUN benchmark (FR0108) fell by 8 bps to 6.72%. According to Bloomberg data, the 10-year SUN yield curve (GIDN10YR) decreased by 5 bps to 6.76%. The 10-year yield remains within our weekly estimated range for this week of 6.69%–6.96%.
Outright transaction volume in Government Securities (SBN) reached Rp22.7 trillion yesterday, lower than the previous day’s volume of Rp30.5 trillion. FR0109 and FR0096 were the two most actively traded series in the secondary market, with transaction volumes of Rp2.8 trillion and Rp2.6 trillion, respectively. Meanwhile, outright transaction volume for corporate bonds totaled Rp3.9 trillion.
At yesterday’s SRBI auction, Bank Indonesia (BI) set the total amount awarded at Rp2.5 trillion, lower than the previous week’s SRBI auction (29 April), which recorded a total awarded amount of Rp27.0 trillion. The weighted average yield (WAY) for the 12-month SRBI stood at 6.50%, increasing by 28 bps compared with the 6.22% WAY at the 29 April auction.
Bloomberg data showed that the Rupiah strengthened by 0.21% against the US Dollar, moving from Rp17,424/US$ on Tuesday to Rp17,387/US$ yesterday.
Bond Market Preview (Thursday,05/07)
The United States and Iran are reportedly considering new proposals to end the conflict that has persisted since early March 2026. Bloomberg data as of this morning showed Brent oil prices at US$101.8 per barrel, down 7.34% from the previous day.
As of this morning, global indicators point to positive sentiment, reflected in lower US Treasury (UST) yields and tighter Indonesia Credit Default Swap (CDS) spreads. The 5-year and 10-year UST yields declined by 9 bps and 7 bps from the previous day to 3.99% and 4.36%, respectively. Meanwhile, Indonesia’s 5-year CDS narrowed by 3 bps to 86 bps.
Taking the above factors into account, we expect demand for Rupiah-denominated SBN to improve. Based on yield-curve valuation, the following bonds may be attractive for investors: FR0104, FR0087, FR0109, FR0091, FR0096, and FR0103.
Kindly find the link to our Fixed Income Daily Market View for May 7, 2026 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=1ce7667c-8ebb-4fb6-a015-62aeff6c322c
ENG
https://research.bnisekuritas.co.id/doc-view?z=697c5ba0-feea-4a3d-9b4e-008438fc8e5a
