HIGHLIGHTS
- The yield on Indonesia’s 10-year Government Bond edged higher to 6.339% on January 22, 2026, compared with 6.333% in the previous session, indicating a marginal uptick in yields. Meanwhile, the 10-year UST yield remained unchanged at 4.26% in yesterday.
- Total government bond trading volume amounted to IDR 40.39 trillion, predominantly concentrated in short-term tenors (below 5 years). This represented a decline from the prior day’s transaction value of IDR 52.98 trillion and remained below the year-to-date average of IDR 49.43 trillion. In contrast, outright transactions increased to IDR 38.45 trillion, up from IDR 29.97 trillion recorded in the previous session.
- Meanwhile, corporate bond trading volume stood at IDR 1.72 trillion, also largely driven by short-term maturities (below 5 years). The volume declined from IDR 2.15 trillion in the prior session and continued to trail the 2026 average daily volume of IDR 3.31 trillion. Outright corporate bond transactions totaled IDR 1.72 trillion, easing from IDR 2.15 trillion previously.
- In the currency and equity markets, the Indonesian Rupiah strengthened by 0.30%, appreciating to IDR 16,885 per US dollar from IDR 16,935. Conversely, the Jakarta Composite Index (JCI) slipped 0.20%, closing at 8,992, down from 9,010. In the commodities space, Brent crude oil prices declined slightly from USD 68.00 to USD 67.66 per barrel, while WTI Cushing crude oil spot prices rose from USD 60.34 to USD 60.82 per barrel.
GLOBAL UPDATES
- The US 10-year Treasury yield climbed to around 4.27%, approaching a five-month high, as resilient economic data reduced expectations for near-term Fed rate cuts. Strong household consumption and low jobless claims reinforced signs of a firm labor market, while elevated core PCE inflation supported a higher-for-longer policy outlook. Although political headlines briefly eased investor concerns, yields remained elevated, reflecting persistent uncertainty over the Fed’s policy path in 2026. (Trading Economics)
- The Fed’s preferred inflation gauge showed headline and core PCE inflation at 2.8% in November, edging further above the central bank’s 2% target and remaining in line with market expectations. While price pressures stayed elevated, income growth was mixed, with personal income rising 0.3% but undershooting forecasts. Consumer spending remained resilient, increasing 0.5% for a second consecutive month, reinforcing the view that demand conditions remain firm despite restrictive monetary policy. (Trading Economics, CNBC)
DOMESTIC UPDATES
- Indonesia’s banking survey shows new credit disbursement strengthened in 4Q25, reflected in a higher Net Balance of Credit Demand (SBT) of 88.92%, up from 82.33% in 3Q25. Credit standards also eased, with lending terms becoming more accommodative across approval costs, processing time, and interest rates. Looking ahead to 2026, banks expect credit growth to remain solid, supported by improving economic prospects and manageable risk conditions, although lending standards are projected to turn slightly more cautious. (Bank Indonesia)
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