Bond Market Review (Monday,01/05)
Government Debt Securities (SUN) prices varied yesterday. PHEI data showed the 5-year benchmark SUN (FR0109) yield fell 3 bps to 5.40%, and the 10-year benchmark (FR0108) yield fell 1 bp to 6.06%. Bloomberg reported the 10-year SUN yield curve (GIDN10YR) rose 4 bps to 6.09%, staying within our weekly estimate of 6.00%–6.19%.
The outright transaction volume of Government Securities (SBN) reached Rp27.3 trillion yesterday, significantly higher than Friday’s volume of Rp15.0 trillion. FR0103 and FR0091 were the two most actively traded series in the secondary market, with transaction volumes of Rp3.4 trillion and Rp3.3 trillion, respectively. Meanwhile, the outright trading volume of corporate bonds amounted to Rp5.4 trillion.
On the currency front, Bloomberg data showed that the Rupiah weakened marginally by 0.09% against the US Dollar, moving from Rp16,725/US$ on Friday to Rp16,740/US$ yesterday.
Bond Market Preview (Tuesday,01/06)
From the global market as of this morning, indicators point to a positive sentiment for the bond market. The 5-year and 10-year US Treasury (UST) yields declined by 3 bps and 2 bps, respectively, to 3.71% and 4.17%. Meanwhile, Indonesia’s 5-year Credit Default Swap (CDS) remained unchanged at 68 bps.
The Government of Indonesia is scheduled to conduct a SUN auction on 6 January 2026 with an indicative target of Rp33 trillion and a maximum issuance of up to 150% of the indicative target. At the previous SUN auction on 16 December 2025, total incoming bids reached Rp64.2 trillion, with awarded bids amounting to Rp15.0 trillion. Assessing current market conditions, we expect total incoming bids at today’s auction to range between Rp70–90 trillion.
Considering the factors above, we anticipate stable demand for Rupiah-denominated Government Securities (SBN). Based on yield curve valuation, the following bonds may be attractive to investors: FR0096, FR0065, FR0068, FR0080, and FR0098.
Kindly find the link to our Fixed Income Daily Market View for January 6, 2026 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=c339c027-1e3d-4acb-82aa-3f810379138e
ENG
https://research.bnisekuritas.co.id/doc-view?z=d8edf4c8-d51e-438e-92db-1955d9e4f9a4
