HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond (INDOGB) stood at 6.389% on 18 February 2026, slightly lower than 6.402% recorded the previous day. Meanwhile, the UST 10-year yield rose by 4 bps to 4.09% yesterday.
- Government bond trading volume surged to IDR 75.42 trillion, predominantly in short-term maturities (<5 years). This marked a significant increase from the prior session’s IDR 31.06 trillion and was well above the year-to-date (YTD) average of IDR 49.43 trillion. Outright transactions reached IDR 38.09 trillion, rising from IDR 24.73 trillion in the previous session.
- In the corporate bond market, total trading volume amounted to IDR 4,282 billion, also dominated by short-term maturities (<5 years). This represented a decline from the previous day’s IDR 4,951 billion, although it remained above the YTD average of IDR 3,313 billion. Outright transactions were recorded at IDR 4,060 billion, down from IDR 4,491 billion in the prior session.
- On the currency front, the rupiah depreciated by 0.27% to IDR 16,884 per USD from IDR 16,839. Meanwhile, the Jakarta Composite Index (JCI) advanced by 1.19% to 8,310 from 8,212. In commodities, Brent crude eased from USD 70.83 to USD 69.69 per barrel, while WTI Cushing crude declined from USD 62.84 to USD 62.33 per barrel.
GLOBAL UPDATES
- US 10Y Treasury yields rebounded to 4.09% after touching a two-month low of 4.04%, as FOMC minutes signaled a more hawkish stance. Policymakers warned that disinflation may take longer than expected, delaying potential rate cuts. Although CPI eased to 2.4%, it remains above the Fed’s 2% target. Some officials did not rule out further tightening. Longer-dated bonds also faced pressure amid speculation the incoming Fed chair may favor a smaller balance sheet. (Trading Economics)
- Japan’s trade balance showed a marked improvement in January 2026, with the deficit narrowing to USD 7.46 billion (JPY 1,152.7 billion) from USD 12.25 billion a year earlier, beating market expectations. Exports climbed 16.8% year-on-year, the fastest pace since November 2022, supported by firm demand from China and other Asian economies ahead of the Lunar New Year. Meanwhile, imports fell 2.5%, reversing December’s gain and marking the first contraction since August despite recent fiscal stimulus measures.(Bloomberg)
DOMESTIC UPDATES
- The Government Bond (SUN) auction held on 18 February 2026 recorded total incoming bids of IDR 63.06 trillion, lower than the IDR 76.59 trillion achieved in the previous auction on 3 February 2026. Series FR0109 attracted the highest demand, with total bids of IDR 24.16 trillion and a bid yield range of 5.64%–5.80%. This was followed by FR0108, which received IDR 21.07 trillion in bids with a yield range of 6.35%–6.50%, and SPN12270204, which garnered IDR 4.78 trillion in bids at yields ranging from 4.72%–4.80%. The Government awarded a total of IDR 40 trillion in this auction, exceeding its indicative target of IDR 33 trillion. As a result, the auction recorded a bid-to-cover ratio of 1.58x. (MoF)
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