HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond declined to 6.368% on 26 January 2026, from 6.397% in the previous session. Meanwhile, the 10-year UST yield declined by 2 bps to 4.22% yesterday.
- Total government bond trading volume increased to IDR 52.64 trillion, dominated by medium-term tenors (5–15 years). This was higher than the previous day’s volume of IDR 30.31 trillion and exceeded the year-to-date (YTD) average of IDR 49.43 trillion. Outright transactions rose to IDR 36.13 trillion from IDR 27.46 trillion in the prior session.
- Meanwhile, total corporate bond trading volume rose to IDR 2.87 trillion, primarily driven by short-term tenors (<5 years). This represented an increase from the previous day’s volume of IDR 2.23 trillion, although it remained below the YTD average of IDR 3.31 trillion. Outright transactions amounted to IDR 2.80 trillion, up from IDR 2.23 trillion in the prior session.
- In other markets, the rupiah appreciated by 0.25% against the US dollar to IDR 16,780 from IDR 16,822, while the Jakarta Composite Index (JCI) edged up by 0.27%, rising from 8,951 to 8,975. In the commodities market, Brent crude oil prices increased to USD 68.08 per barrel from USD 66.24, while WTI Cushing crude oil prices climbed to USD 61.24 per barrel from USD 59.48.
DOMESTIC UPDATES
- The Government of Indonesia will conduct a Sovereign Sharia Securities (SBSN) auction on Tuesday, 27 January 2026. The series to be offered at this auction include SPNS09032026, SPNS10082026, SPNS12102026, as well as PBS030, PBS040, PBS034, PBS005, and PBS038 (reopening). For this auction, the government has set an indicative target of IDR 11 trillion. BRI Danareksa Sekuritas estimates that total incoming bids in the upcoming auction could reach IDR50–60 trillion, with an expected bid-to-cover ratio of 4.55x–5.45x. (MoF, BRIDS Estimate)
- The Finance Ministry plans to issue domestic FX-denominated government bonds (SBN Valas) to absorb export proceeds, following the rollout of new rules requiring exporters to keep 50% of FX earnings in state banks for 12 months (DHE SDA). The issuance schedule will be announced after the regulation is enacted. The policy aims to strengthen FX reserves, which rose only US$0.8bn in 2025 despite a US$38.5bn trade surplus. Proceeds will be used flexibly, with issuance timing adjusted to market conditions and liquidity. (MoF)
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