HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.050% on August 26, 2026, vs 7.012% the day before. Meanwhile, the 10-year US Treasury yield rose by 2 bps to 4.66% yesterday.
- Government bonds volume was IDR67.86 trillion, and it was dominated by medium term (5-15 years). It was increased than the previous day transaction of IDR49.57 trillion. The volume higher than its YTD average of IDR49.43 trillion. While the outright transaction reached IDR16.07 trilion fell from the previous day's transaction which amount to IDR20.33 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR7,412 billion, dominated by short term (< 5 years). The transaction volume advanced compared to the previous day's volume of IDR5,297 billion. The volume higher compared to this year's average of IDR3,313 billion. Meanwhile, outright transaction recorded at IDR7,390 billion increased from the previous day's transaction of IDR5,231 billion.
- The Rupiah exchange rate against the US Dollar weakened by 0.00% to IDR17,712 from IDR17,712 while the JCI fell -1.48% from 6,502 to 6,406. Then Brent dropped from 92.17 to 85.89 USD per barrel, while WTI Cushing Crude Oil Spot price dropped from 85.01 to 79.87 USD per barrel.
GLOBAL UPDATES
- US PCE inflation remained elevated at 3.7% YoY in July 2026, unchanged from June and above the 3.6% market expectation. Core PCE also held at 3.3% YoY, in line with forecasts. On a monthly basis, headline PCE rose 0.2% MoM, following a 0.1% decline in June and exceeding expectations of 0.1%, while core PCE increased 0.2% from 0.1% previously. Services inflation accelerated to 0.3%, while goods prices declined 0.1%. Meanwhile, real consumer spending was flat mom, slowing sharply from 0.4% growth in June. The saving rate rose to 3.0% from 2.6%, supported by a 0.4% increase in after-tax income. (CNBC)
DOMESTIC UPDATES
- The Government of Indonesia's Government Sharia Securities (SBSN) auction held on 26 August 2026 attracted total incoming bids of IDR23.54 trillion, significantly lower than the IDR39.08 trillion recorded in the previous auction on 11 August 2026. The SPNS25052027 series received the highest demand, attracting IDR4.32 trillion in bids with a submitted yield range of 6.85%–6.93%. This was followed by PBS040, which received IDR4.13 trillion in bids at a yield range of 6.75%–6.95%, while PBS030 attracted IDR3.60 trillion in bids with a yield range of 6.58%–6.76%. The Government awarded a total of IDR10 trillion, in line with its indicative issuance target of IDR10 trillion. As a result, the auction recorded a bid-to-cover ratio of 2.35x. (MoF)
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