HIGHLIGHTS
- The yield of Indonesia’s 10-year government bonds rose to 6.701% on May 26, 2026, from 6.682% in the previous trading day. Meanwhile, the 10-year UST yield fell by 3 bps to 4.45% as of Thursday, May 28, 2026.
- Government bond trading volume reached IDR66.30 trillion, dominated by short-term tenors (<5 years). The volume increased from the previous day’s transaction value of IDR47.04 trillion and was above its YTD average of IDR49.43 trillion. Meanwhile, outright transactions surged to IDR47.80 trillion from IDR18.19 trillion in the prior session.
- In the corporate bond market, total trading volume stood at IDR8.51 trillion, mainly concentrated in short-term tenors (<5 years). The transaction volume declined compared to the previous day’s IDR13.39 trillion, although it remained higher than this year’s average volume of IDR3.31 trillion. Outright transactions amounted to IDR8.50 trillion, increasing from IDR6.49 trillion recorded in the previous trading day.
- Meanwhile, the Rupiah weakened by 0.26% against the US Dollar to IDR17,789 from IDR17,743, while the Jakarta Composite Index (JCI) declined by 1.23% from 6,206 to 6,130. In the commodities market, Brent crude oil prices increased from USD96.14 to USD99.60 per barrel, whereas WTI Cushing crude oil spot prices fell from USD96.60 to USD93.10 per barrel.
GLOBAL UPDATES
- US inflation pressures remained elevated in April 2026 as headline PCE inflation accelerated to 3.8% YoY from 3.5%, while core PCE rose to 3.3% YoY from 3.2%, both staying well above the Federal Reserve’s 2% target. Monthly headline PCE increased 0.4%, below expectations of 0.5%, while core PCE rose 0.2%, softer than the 0.3% forecast. Higher spending on housing and utilities, healthcare, transportation services, and gasoline-related goods continued to drive PCE growth, reflecting persistent cost pressures across both goods and services categories. (US BEA)
DOMESTIC UPDATES
- The Government Bond (SUN) auction held on May 26, 2026 recorded total incoming bids of IDR57.30 trillion, higher than IDR51.40 trillion recorded in the previous auction on May 12, 2026. Series FR0109 attracted the highest investor interest, with total bids reaching IDR20.20 trillion and incoming yield ranges of 6.58%–7.05%. Meanwhile, FR0108 received bids totaling IDR8.49 trillion with incoming yield ranges of 6.64%–7.10%, while FR0106 recorded bids amounting to IDR6.14 trillion with yield ranges of 6.81%–7.50%. In this auction, the government awarded a total of IDR36.85 trillion, slightly above its indicative target of IDR36 trillion. Consequently, the auction’s bid-to-cover ratio stood at 1.56x. (MoF)
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