Market Brief<\/p>\n\n\n\n
Indonesia\u2019s local-currency government bond market extended its losses, with yields rising 2\u20138 bps across the curve yesterday. The benchmark 10-year yield climbed 8 bps to 6.54%, reflecting sustained pressure from global rate repricing and a softer currency backdrop. The Rupiah depreciated further to IDR16,872\/USD, from IDR16,868\/USD in the previous day. Market activity improved meaningfully. Outright turnover in government securities rose to IDR27.5 trillion from IDR15.1 trillion in the prior session, thanks to successful government bond auction. Corporate bond trading volumes also remained constructive at IDR9.9 trillion. In the external space, Indonesia\u2019s USD-denominated sovereign bonds weakened modestly, with Indo-31, Indo-36, and Indo-54 yields rising to 4.39% (+3 bps), 5.11% (+7 bps), and 5.48% (+4 bps), respectively.<\/p>\n\n\n\n
U.S. Treasury yields advanced further on Tuesday, extending the recent sell-off as geopolitical tensions intensified and inflation concerns resurfaced. Yields rose by 2 bps across the curve, with the 2Y, 5Y, 10Y, and 30Y benchmarks closing at 3.50%, 3.63%, 4.06%, and 4.70%, respectively. The absence of a sustained safe-haven bid highlights market concern that rising energy prices could reaccelerate inflation and delay the Federal Reserve\u2019s easing trajectory. Geopolitical risks escalated as the U.S.\u2013Iran conflict entered its fourth day, with reports of attacks on the U.S. Embassy in Riyadh and renewed Israeli strikes in Iran and Lebanon following Hezbollah missile launches. Iran\u2019s reported closure of the Strait of Hormuz and threats to maritime traffic amplified fears of energy supply disruptions. Oil prices spiked in response, with WTI briefly moving above USD73\/bbl and Brent surpassing USD80\/bbl, before retracing gains after President Trump announced that the U.S. Navy would provide support to tankers operating in the region. The USD Index strengthened 0.6% to 99.00, touching its highest level since late November. Inflation concerns were reinforced by the latest ISM Manufacturing report. While the headline index eased to 52.4, the Prices Paid component surged 11.5 points to 70.5\u2014its highest level since June 2022\u2014adding to already firm producer price data in January. The sharp rise in input costs, particularly energy-related, has heightened fears of renewed upstream price pass-through. European sovereign bonds tracked U.S. Treasuries lower, with 10-year yields rising to 2.75% (+4 bps) in Germany, 4.47% (+10 bps) in the UK, and 3.37% (+8 bps) in France.<\/p>\n\n\n\n
Indonesia\u2019s government bond market is expected to trade with a cautious but relatively stable bias. While global inflation risks and U.S. rate volatility may continue to shape near-term positioning, domestic demand conditions remain resilient. The latest government bond auction offers a supportive technical signal. The Ministry of Finance raised IDR35.0 trillion, slightly above its IDR34.1 trillion indicative target. Total incoming bids moderated to IDR50.9 trillion from IDR63.1 trillion previously but still represented a solid 1.5x bid-to-cover ratio, indicating sustained investor appetite despite a more volatile global backdrop. Overall, while external uncertainties warrant prudence, orderly funding conditions and adequate auction absorption suggest that downside pressures in the local bond market may remain contained in the near term.<\/p>\n\n\n\n
Fixed Income News<\/p>\n\n\n\n
\u2022 The Government of Indonesia raised IDR35.0 trillion at yesterday\u2019s bond auction, modestly above its indicative target of IDR34.1 trillion.<\/p>\n\n\n\n
\u2022 Fitch Ratings Indonesia has affirmed PT Penjaminan Infrastruktur Indonesia\u2019s (IIGF) National Long Term Rating at \u2018AAA(idn)\u2019 with a Stable Outlook.<\/p>","protected":false},"excerpt":{"rendered":"
Market Brief Indonesia\u2019s local-currency government bond market extended its losses, with yields rising 2\u20138 bps across the curve yesterday. The […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[7],"tags":[],"class_list":["post-6613","post","type-post","status-publish","format-standard","hentry","category-market-research"],"_links":{"self":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/comments?post=6613"}],"version-history":[{"count":1,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6613\/revisions"}],"predecessor-version":[{"id":6614,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6613\/revisions\/6614"}],"wp:attachment":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/media?parent=6613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/categories?post=6613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/tags?post=6613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}