HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond declined to 7.343% on June 10, 2026, from 7.414% in the previous trading session. Meanwhile, the 10-year UST yield rose by 2 bps to 4.55% yesterday.
- Government bond trading volume totaled IDR43.66 trillion, with activity primarily concentrated in short-term tenors (less than 5 years). The volume decreased from IDR68.02 trillion recorded in the previous session and remained below the year-to-date (YTD) average of IDR49.43 trillion. Meanwhile, outright transactions fell to IDR22.69 trillion, compared with IDR37.50 trillion in the preceding trading day.
- Corporate bond trading volume reached IDR12.06 trillion, dominated by short-term tenors (less than 5 years). The volume increased from IDR8.67 trillion in the previous session and remained significantly above the YTD average of IDR3.31 trillion. Meanwhile, outright transactions rose to IDR12.04 trillion, up from IDR7.66 trillion recorded on the previous trading day.
- The Indonesian Rupiah appreciated by 0.59% against the US Dollar, strengthening to IDR17,953/USD from IDR18,060/USD. Meanwhile, the Jakarta Composite Index (JCI) advanced by 2.71%, rising from 5,747 to 5,902. In the commodities market, Brent crude oil edged lower from USD91.45 to USD91.01 per barrel, while WTI Cushing Crude Oil Spot declined from USD88.20 to USD87.59 per barrel.
GLOBAL UPDATES
- US headline inflation is projected to accelerate to 4.2% YoY in May 2026 from 3.8% in April, marking the highest reading since April 2023 and the third consecutive monthly increase. The pickup is largely attributed to higher gasoline prices following the Iran-related energy shock, although broader inflation pass-through remains limited. On a monthly basis, CPI is expected to rise 0.5%, slightly below April’s 0.6% increase. Meanwhile, core inflation is forecast to edge up to 2.9% YoY from 2.8%, while monthly core CPI is expected to moderate to 0.3% from 0.4%, suggesting underlying price pressures remain relatively contained. (U.S. BLS)
- The US trade deficit narrowed to USD55.9 billion in April 2026 from a revised USD56.6 billion in March, outperforming market expectations. Exports rose 2.6% to a record USD327.1 billion, supported by stronger shipments of capital goods, industrial supplies, and consumer products, with higher energy exports benefiting from elevated oil prices amid Middle East tensions. Meanwhile, imports increased 2.0% to USD383.0 billion, the highest level in a year, driven primarily by robust demand for capital goods such as computers, semiconductors, and telecommunications equipment, signaling continued business investment momentum. (U.S. BEA)
- China’s inflation remained subdued at 1.2% YoY in May 2026 , unchanged from April and slightly below market expectations, highlighting the continued absence of broad-based price pressures. Higher transportation costs, driven by elevated energy prices and supply-chain disruptions linked to Middle East tensions, helped offset persistent weakness in food prices, which declined 1.7% YoY amid falling pork and fruit prices. Meanwhile, core inflation eased slightly to 1.1% YoY from 1.2%, while consumer prices edged down 0.1% MoM, underscoring a still-fragile domestic demand environment despite rising external cost pressures. (Bloomberg, CNBC)
DOMESTIC UPDATES
- Indonesia’s Consumer Confidence Index declined to 120.9 in May 2026 from 123.0 in April, lowest since September 2025. The moderation was mainly driven by a weaker assessment of current economic conditions, with the current economic condition index falling 4.3 points to 112.2 while durable goods purchases declined 4.3 points to 108.3. Perceptions of job availability over the past six months dropped 3.8 points to 105.0 while expectations for eased slightly by 0.4 points to 136.5. Moreover, expectations for job availability and business activity improved modestly, with both indices rising 0.4 points to 128.1 and 124.5. Overall, consumer confidence remained firmly above the 100-point optimism threshold. (Bank Indonesia)
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