HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond declined sharply to 6.895% on June 17, 2026, from 7.417% in the previous trading session. Meanwhile, the 10-year U.S.Treasury yield rose by 6 bps to 4.49% yesterday.
- Government bond trading volume reached IDR88.13 trillion, with activity primarily concentrated in short-term tenors (less than 5 years). The volume increased significantly from IDR49.87 trillion recorded in the previous session and remained well above the year-to-date (YTD) average of IDR49.43 trillion. Meanwhile, outright transactions totaled IDR22.86 trillion, down from IDR26.12 trillion in the preceding trading day.
- Corporate bond trading volume amounted to IDR7.89 trillion, dominated by short-term tenors (less than 5 years). The volume declined from IDR8.89 trillion in the previous session but remained substantially higher than the YTD average of IDR3.31 trillion. Meanwhile, outright transactions stood at IDR7.89 trillion, decreasing from IDR8.89 trillion recorded on the previous trading day.
- The Indonesian Rupiah depreciated by 0.20% against the US Dollar, weakening to IDR17,738/USD from IDR17,703/USD. Meanwhile, the Jakarta Composite Index (JCI) slipped by 0.55%, declining from 6,255 to 6,221. In the commodities market, Brent crude oil fell from USD83.17 to USD78.79 per barrel, while WTI Cushing Crude Oil Spot declined from USD80.75 to USD75.81 per barrel.
GLOBAL UPDATES
- The Fed keep rates unchanged at 3.50%-3.75% for a fourth consecutive meeting in June, but adopted a distinctly more hawkish stance as rising inflation risks linked to Middle East-driven energy shocks outweighed concerns over slower growth. Updated projections showed a split committee, with 9 officials expecting at least one rate hike this year and the median policy path now implying a 3.8% year-end rate. The Fed also raised its 2026 inflation forecast to 3.6% (from 2.7%) while lowering GDP growth to 2.2%. In his first meeting as Chair, Kevin Warsh removed the Fed’s easing bias, emphasized an “unambiguous” commitment to price stability, and signaled a broader overhaul of the Fed’s communication and policy framework. (The Fed, CNBC)
DOMESTIC UPDATES
- The Government's Sovereign Sukuk (SBSN) auction held on June 17, 2026 recorded total incoming bids of IDR19.14 trillion, lower than the IDR26.06 trillion received in the previous auction conducted on June 2, 2026. Among the securities offered, SPNS01032027 attracted the strongest investor demand, with total bids reaching IDR5.42 trillion and incoming yield ranges of 7.15%–7.55%. This was followed by PBS030, which garnered IDR4.71 trillion in bids with yield ranges of 6.95%–7.30%, and SPNS16122026, which received IDR2.97 trillion in bids at yield ranges of 6.90%–7.30%. In this auction, the Government awarded a total of IDR9.45 trillion, below its indicative issuance target of IDR12 trillion. As a result, the auction recorded a bid-to-cover ratio of 2.03x, reflecting relatively solid investor demand despite the lower volume of bids compared to the previous auction. (MoF)
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