HIGHLIGHTS
- The yield on 10-year Indonesian Government Bonds stood at 6.857% as of May 8, 2025, slightly down from 6.863% recorded the previous day. Meawhile, UST 10yr yield rose by 11 bps to 4.37% yesterday.
- The total trading volume of government bonds reached IDR49.13 trillion, primarily driven by short-term tenors (less than 5 years). This marked an increase from IDR46.80 trillion on the previous trading day and was also above the year-to-date (YTD) average of IDR48.51 trillion. Meanwhile, outright transactions amounted to IDR20.95 trillion, declining from IDR26.93 trillion the day before.
- Corporate bond trading volume was recorded at IDR2.67 trillion, also dominated by short-term maturities (less than 5 years). The volume decreased from IDR4.07 trillion on the previous day and remained below the YTD average of IDR2.95 trillion. Outright transactions totaled IDR2.66 trillion, down from IDR4.06 trillion previously.
- The Indonesian Rupiah appreciated by 0.25% against the US Dollar, strengthening to IDR16,495 from IDR16,536. In contrast, the Jakarta Composite Index (JCI) declined by 1.42%, falling from 6,926 to 6,828. On the commodities front, Brent crude oil dropped from USD62.71 to USD61.07 per barrel, while WTI Cushing crude fell from USD59.09 to USD58.07 per barrel.
GLOBAL UPDATES
- The Bank of England voted 5–4 to cut Bank Rate by 25bps to 4.25% in May as expected. Two members preferred a larger cut to 4%, while two opted to hold at 4.5%. The decision reflects continued disinflation progress as external shocks eased and tight policy helped anchor inflation expectations. (Trading Economics)
DOMESTIC UPDATES
- Indonesia’s foreign exchange reserves fell to USD 152.5 billion in April 2025, down from USD 157.1 billion in March — the highest level on record. This marks the lowest level since last November, primarily due to the government’s external debt payments and the central bank’s ongoing efforts to stabilize the rupiah amid persistent global financial market uncertainty. (BPS)
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