HIGHLIGHTS
- The yield on 10-year Indonesian Government Bonds stood at 6.206% on 10 December 2025, slightly lower than 6.210% recorded the previous day. Meanwhile, UST 10yr yield decreased by 5bps to 4.13% yesterday.
- Government bond trading volume reached IDR37.40 trillion, with transactions largely concentrated in short-term maturities (< 5 years). The volume declined from IDR40.97 trillion the day before and remained below the year-to-date (YTD) average of IDR50.08 trillion. Outright transactions totaled IDR19.90 trillion, also down from IDR29.70 trillion recorded previously.
- Corporate bond trading volume amounted to IDR4,447 billion, still dominated by short-term tenors (< 5 years). The volume decreased from IDR6,889 billion in the prior session but remained above the YTD average of IDR3,282 billion. Outright transactions reached IDR4,297 billion, down from IDR6,889 billion the day before.
- The Rupiah weakened by 0.12% to IDR16,685 per USD from IDR16,665, while the JCI rose 0.51% from 8,657 to 8,701. Brent crude oil prices slipped from USD 63.68 to USD 62.80 per barrel, and WTI Cushing crude declined from USD 58.88 to USD 58.25 per barrel.
GLOBAL UPDATES
- The Fed lowered the federal funds rate by 25 bps to 3.50–3.75% as economic activity continues to expand moderately while job gains slow and unemployment edges higher. Inflation has risen from earlier in the year and remains elevated, prompting policymakers to balance risks to both employment and price stability. The Fed will continue monitoring data and stands ready to adjust policy as needed. It also initiated Treasury bill purchases to maintain ample reserves, with some dissent over the size of the rate cut. (The Fed)
DOMESTIC UPDATES
- Retail sales grew by 4.3% y/y (0.6% m/m) in October 2025, accelerating from 3.7% y/y (-2.4% m/m) in the previous month. The improvement reflects stronger demand ahead of the Christmas holiday season, supported by smooth goods distribution. Growth was mainly driven by sales of cultural and recreational goods, as well as food, beverages, and tobacco. Retail sales growth in November is projected to increase further to 5.0% y/y (1.1% m/m), as demand continues to strengthen toward year-end. (Bank Indonesia)
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