Bond Market Review (Wednesday,01/28)
Prices of Government Debt Securities (SUN) tended to weaken during yesterday’s trading session. Based on PHEI data, the yield on the 5-year SUN benchmark (FR0109) rose by 2 basis points (bp) to 5.72%, while the yield on the 10-year SUN benchmark (FR0108) increased by 1 bp to 6.35%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) remained unchanged at 6.36%. The 10-year yield level remains within our weekly estimated range of 6.19%–6.44%.
The outright transaction volume of Government Securities (SBN) amounted to Rp23.5 trillion yesterday, lower than the previous day’s volume of Rp25.8 trillion. FR0104 and FR0065 were the two most actively traded series in the secondary market, with transaction volumes of Rp3.8 trillion and Rp1.6 trillion, respectively. Meanwhile, outright transaction volume for corporate bonds was recorded at Rp1.8 trillion.
At yesterday’s SRBI auction, Bank Indonesia set the total awarded amount at Rp11.0 trillion. The weighted average yield (WAY) of 12-month SRBI rose by 17 bps compared with last Friday’s auction to 5.01%. Based on the latest OMO auction schedule, BI is set to conduct another SRBI auction this Friday.
Bloomberg data showed that the Rupiah appreciated by 0.28% against the US Dollar, strengthening from Rp16,768/US$ on Tuesday to Rp16,722/US$ yesterday.
Bond Market Preview (Thursday,01/29)
At the January FOMC Meeting, the committee decided to maintain the Federal Funds Rate (FFR) at 3.50%–3.75% with a 10–2 vote. The Fed assessed that inflation remains relatively elevated while economic activity continues to expand at a solid pace. The Fed stated that it is well-positioned to determine the extent and timing of further adjustments to the policy rate based on incoming data, the evolving outlook, and the balance of risks. The Fed also stated that monetary policy is not on a preset course and that decisions will be made on a meeting-by-meeting basis (Bloomberg).
As of this morning, global indicators suggest a somewhat negative sentiment for the bond market, as seen in higher US Treasury (UST) yields and rising Indonesian Credit Default Swap (CDS) levels. The 5-year and 10-year UST yield curves increased by 2 bps each to 3.83% and 4.26%, respectively. Meanwhile, Indonesia’s 5-year CDS rose by 2 bps to 75 bps.
Taking these factors into account, we anticipate a potential increase in price and yield volatility for Rupiah-denominated Government Securities (SBN). Based on yield curve valuation, the following bonds may be attractive to investors: FR0096, FR0065, FR0100, FR0068, FR0075, and FR0106.
Kindly find the link to our Fixed Income Daily Market View for January 29, 2026 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=2eeb31f7-ac07-4db3-806b-dc66533bfd91
ENG
https://research.bnisekuritas.co.id/doc-view?z=f418f0d7-8b3d-4c38-8014-23c29165a5e1
