HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond (INDOGB) stood at 6.606% on May 8, 2026, slightly higher than 6.605% recorded on the previous day. Meanwhile, the UST 10-year yield fell by 3 bps to 4.38% yesterday.
- Government bond trading volume reached IDR32.31 trillion, primarily concentrated in short-term tenors (<5 years). The volume declined from the previous day’s transaction value of IDR40.48 trillion and remained below the year-to-date average of IDR49.43 trillion. Meanwhile, outright transactions amounted to IDR16.02 trillion, decreasing from IDR30.14 trillion in the prior trading session.
- In the corporate bond market, total trading volume was recorded at IDR11.72 trillion, also dominated by short-term tenors (<5 years). The volume increased significantly compared to the previous day’s level of IDR6.26 trillion and remained well above the year-to-date average of IDR3.31 trillion. Outright transactions totaled IDR11.70 trillion, rising from IDR6.26 trillion in the previous session.
- In the broader financial market, the Rupiah depreciated by 0.18% against the US Dollar to IDR17,373 from IDR17,342, while the Jakarta Composite Index (JCI) declined by 2.86% from 7,174 to 6,969. In the commodities market, Brent crude oil prices eased to USD99.78 per barrel from USD100.06 per barrel, while WTI Cushing crude oil prices fell to USD94.27 per barrel from USD94.81 per barrel.
GLOBAL UPDATES
- US labor market data showed mixed signals in April as nonfarm payrolls rose by 115K, beating expectations of 62K, though hiring slowed from March’s revised 185K gain. Job growth was led by healthcare, transportation, warehousing, and retail, while federal government, information, and manufacturing employment declined. Meanwhile, the unemployment rate held steady at 4.3%, but underlying details softened: employment fell by 226K, labor force participation slipped to 61.8%, and the broader U-6 jobless rate increased to 8.2%, suggesting gradual cooling despite overall resilience. (U.S. Bureau of Labor Statistics)
DOMESTIC UPDATES
- Indonesia’s foreign exchange reserves stood at USD146.2 bn in April 2026, slightly lower than USD148.2 bn in March. The decline mainly reflected government external debt repayments and Bank Indonesia’s rupiah stabilization measures amid heightened global financial market uncertainty, partly offset by tax and services revenues as well as proceeds from government global bond issuance. Reserve adequacy remained strong, equivalent to 5.8 months of imports or 5.6 months of imports and government external debt servicing, well above the international standard. (Bank Indonesia)
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