HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.003% on October 28, 2025, vs 5.999% the day before. Meanwhile, UST 10yr yield declined by 2 bps to 3.99% yesterday.
- Government bonds volume was IDR35.33 trillion, and it was dominated by short term (< 5 years). It was declined than the previous day transaction of IDR44.38 trillion. The volume lower than its YTD average of IDR51.07 trillion. While the outright transaction reached IDR21.57 trilion dropped from the previous day's transaction which amount to IDR26.91 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,875 billion, dominated by short term (< 5 years). The transaction volume declined compared to the previous day's volume of IDR2,788 billion. The volume lower compared to this year's average of IDR3,223 billion. Meanwhile, outright transaction recorded at IDR1,824 billion declined from the previous day's transaction of IDR2,721 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.06% to IDR16,605 from IDR16,615 while the JCI dropped -0.30% from 8,117 to 8,093. Then Brent fell from 66.46 to 65.64 USD per barrel, while WTI Cushing Crude Oil Spot price dropped from 62.31 to 61.31 USD per barrel.
GLOBAL UPDATES
- U.S. consumer confidence fell for a third straight month in October to 94.6, the lowest since April, as concerns over inflation, job prospects, and political uncertainty, particularly the government shutdown, dampened sentiment. The expectations index slid to 71.5, signaling weaker outlooks for income and employment. Although household spending remains resilient, the decline in confidence highlights growing economic caution. This sustained weakness strengthens the case for the Fed to continue rate cuts to support demand and stabilize sentiment, though resilient spending may limit aggressive easing. (Bloomberg)
DOMESTIC UPDATES
- The auction of Government Sharia Securities (SBSN) on October 28, 2025, recorded total incoming bids of IDR 51.43 trillion, showing a significant increase from the previous auction on October 14, 2025, which reached IDR 59.21 trillion. The PBS034 series received the highest bids, totaling IDR 11.82 trillion, with a yield range of 6.26%–6.49%. It was followed by the PBSG002 (new issuance) and PBS040 (new issuance) series, which attracted IDR 10.54 trillion and IDR 9.05 trillion in bids, respectively. The PBSG002 series offered yields between 5.86%–6.01%, while PBS040 ranged from 5.36%–5.55%. The government successfully raised IDR 10 trillion in this auction, exceeding the indicative target of IDR 7 trillion. The bid-to-cover ratio of 5.14x reflected strong investor appetite for SBSN instruments. (MoF)
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