HIGHLIGHTS         

 

  1. The 10-year Indonesia Government Bond yield rose to 6.544% on March 3, 2026, from 6.462% in the previous session. Meanwhile, the UST 10-year yield rose by 1 bps to 4.06% yesterday.

 

  1. Total government bond trading volume reached IDR65.84 trillion, predominantly in the medium-tenor segment (5–15 years). This marked a significant increase from the prior day’s volume of IDR38.71 trillion and stood above the year-to-date average of IDR49.43 trillion. Outright transactions totaled IDR52.94 trillion, sharply higher than IDR19.74 trillion recorded a day earlier.

 

  1. In the corporate bond market, total trading volume amounted to IDR10.67 trillion, mainly concentrated in short tenors (<5 years). This was higher than the previous day’s IDR7.20 trillion and well above the YTD average of IDR3.31 trillion. Outright transactions reached IDR10.66 trillion, up from IDR7.20 trillion in the prior session.

 

  1. The Rupiah appreciated marginally by 0.02% to IDR16,857/USD from IDR16,861/USD. Meanwhile, the JCI declined by 0.96% to 7,940 from 8,017. In commodities, Brent crude rose to USD77.71/bbl from USD70.83/bbl, while WTI increased to USD71.30/bbl from USD67.39/bbl.

 

GLOBAL UPDATES

 

  1. US Treasury yields advanced amid mounting inflation concerns, with the 10-year yield rising to about 4.1%, its highest since mid-February. Escalating tensions involving Iran and surging energy prices reduced expectations for a July rate cut, pushing market bets to September, though 25bps cuts remain priced in for 2026. New York Fed President John Williams cited stabilizing labor market conditions and projected 2.5% growth this year. While tariffs may have largely one-off effects, inflation progress has stalled, and further easing will depend on clearer disinflation signals. (Trading Economics, Bloomberg)

 

  1. Eurozone inflation rebounded to 1.9% in February 2026, snapping a downward trend after hitting a 16-month low in January. This preliminary estimate exceeded market forecasts of 1.7%, driven largely by accelerating service sector prices, which jumped to 3.4%. While energy costs continued to decline, the pace of those drops slowed significantly. Core inflation also edged higher to 2.4%. Among major economies, France and Italy saw notable price accelerations, whereas Germany provided a slight silver lining with a marginal easing to 2.0%. (Eurostats)

 

DOMESTIC UPDATES

 

  1. The Government Bond (SUN) auction held on 3 March 2026 recorded total incoming bids of IDR50.94 trillion, lower than the IDR63.06 trillion booked in the previous auction on 18 February 2026. The FR0108 series attracted the highest demand, with total bids reaching IDR14.68 trillion and bid yield ranges of 6.43%–6.80%. This was followed by FR0109, which received bids amounting to IDR10.78 trillion with yield ranges of 5.83%–6.20%, and SPN12270304, which garnered IDR6.80 trillion in bids with yields ranging from 4.95% to 5.02%. The government awarded a total of IDR34.10 trillion, slightly exceeding the indicative target of IDR33 trillion, resulting in a bid-to-cover ratio of 1.49x. (MoF)

 

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