Bond Market Review (Monday,12/01)

Government Debt Securities (SUN) prices strengthened during yesterday’s trading session. According to data from PHEI, the yield on the 5-year SUN benchmark (FR0104) fell by 5 basis points (bps) to 5.78%, while the yield on the 10-year benchmark (FR0103) declined by 3 bps to 6.26%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) dropped by 4 bps to 6.28%. The 10-year yield curve level remains within our weekly estimated range of 6.13%–6.32%.

The outright transaction volume of Government Securities (SBN) reached Rp12.5 trillion yesterday, lower than Friday’s volume of Rp22.2 trillion. FR0103 and PBS032 were the two most actively traded series in the secondary market, with transaction volumes of Rp2.2 trillion and Rp2.1 trillion, respectively. Meanwhile, the outright trading volume of corporate bonds stood at Rp2.6 trillion.

Bloomberg data showed that the Rupiah appreciated slightly against the US Dollar, moving from Rp16,675/US$ on Friday to Rp16,663/US$ yesterday.

Bond Market Preview (Tuesday,12/02)

Bank of Japan Governor Kazuo Ueda said the BOJ will consider the ‘pros and cons’ of a rate increase at the December meeting, indicating that any potential hike would be an adjustment in the degree of monetary easing rather than a shift toward restrictive tightening. Market participants responded by raising expectations of a December rate hike, driving yen appreciation and higher Japanese government bond yields.

As of this morning, global indicators again point to a negative sentiment for the bond market, reflected in rising US Treasury (UST) yields. The 5-year and 10-year UST yields increased by 8 bps and 7 bps, respectively. Meanwhile, Indonesia’s 5-year Credit Default Swap (CDS) rose slightly by 1 bp to 74 bps.

The Indonesian Government will conduct a SUN auction on 2 December 2025 with an indicative target of Rp23 trillion and a maximum target of 150% of the indicative target. In the previous SUN auction on 18 November 2025, total incoming bids reached Rp78.9 trillion, with awarded bids of Rp28.0 trillion. Assessing current market conditions, we estimate that total incoming bids in today’s auction will be in the range of Rp70–90 trillion.

Considering the factors above, we anticipate increased volatility in prices and yields of Rupiah-denominated Government Securities (SBN). Based on yield curve valuation, the following bonds may be attractive to investors: FR0096, FR0065, FR0100, FR0103, and FR0106.

Kindly find the link to our Fixed Income Daily Market View for December 2, 2025 provided below this message. Thank you and best regards!

IND

https://research.bnisekuritas.co.id/doc-view?z=471574fc-edae-4aff-b9f5-6fb28e2b709a

ENG

https://research.bnisekuritas.co.id/doc-view?z=0168ce86-67fc-4187-8b86-b3a5194709a5