• Positive momentum continues as bond yields fell on global trends, driven by rate cut expectations and more dovish policy shifts.
• Rapid yield declines risk reversal as inflation pressures and lesser easing prospects may widen Fed-market gap, increasing volatility ahead.
• 2Q25 GDP beat expectations, but mixed indicators persist, we expect several factors to signal stronger growth momentum in 2H.

HIGHLIGHTS

• The Positive Momentum Continued
• What’s Next?
• Mixed Domestic Trend Signals
• Capital Market – Narrowing Yield Differential
• Upcoming SUN Auction
• SUN Auction Recap

This Week Key Focus

• Indonesia Retail Sales – June 2025 (Monday)
• United States Inflation – July 2025 (Tuesday)
• China Retail Sales - July 2025 (Friday)

Last week Key Events

DOMESTIC UPDATES

• Indonesia’s GDP rose 5.12% y-y (4.04% q-q) in 2Q25
• Indonesia’s foreign reserves declined slightly to USD152bn in Jul-25
• BI’s July 2025 Consumer Survey showed improved confidence

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