HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond increased to 7.348% on 4 August 2026, from 7.319% in the previous trading session. Meanwhile, the 10-year US Treasury yield decline by 7 bps to 4.63% yesterday.
- Trading activity in the government bond market totaled IDR60.28 trillion, up from IDR57.98 trillion in the previous session, with transactions primarily concentrated in short-tenor bonds (less than five years). Trading volume remained above the year-to-date (YTD) daily average of IDR49.43 trillion. Meanwhile, outright transactions increased to IDR17.08 trillion, compared with IDR11.09 trillion in the prior trading session.
- In the corporate bond market, total trading volume declined to IDR7.40 trillion from IDR8.19 trillion in the previous session, with activity continuing to be dominated by short-tenor bonds (less than five years). Despite the decline, trading volume remained well above the YTD daily average of IDR3.31 trillion. Outright transactions also decreased to IDR7.40 trillion, from IDR7.96 trillion in the previous session.
- In the currency market, the Indonesian Rupiah depreciated by 0.18% against the US Dollar to IDR18,023/USD, from IDR17,990/USD in the previous session. Meanwhile, the Jakarta Composite Index (JCI) gained 1.37%, closing at 6,320 from 6,234. In the commodity market, Brent crude edged lower to USD83.64 per barrel from USD83.77, while WTI Cushing Crude Oil Spot declined to USD79.77 per barrel from USD80.34.
GLOBAL UPDATES
- The US trade deficit narrowed to USD73.0 billion in June 2026 from USD77.6 billion in May, broadly in line with market expectations, as imports declined faster than exports. Imports fell 1.8% to USD388.0 billion, driven by lower purchases of capital and consumer goods, while exports slipped 0.9% to USD314.7 billion amid weaker shipments of industrial supplies and capital goods. In the first half of 2026, the cumulative trade deficit narrowed to USD371.2 billion from USD560.5 billion a year earlier, suggesting trade flows are gradually normalizing following last year’s tariff-related front-loading of imports, despite persistent policy uncertainty. (US BEA)
DOMESTIC UPDATES
- Government Bond Auction. The Government of Indonesia's Government Securities (SUN) auction held on 4 August 2026 attracted total bids of IDR70.72 trillion, higher than the IDR67.89 trillion recorded in the previous auction on 21 July 2026. The newly issued FR0110 series received the strongest investor demand, with total bids of IDR34.49 trillion and a submitted yield range of 7.20%–7.50%. This was followed by the FR0108 series, which attracted IDR10.15 trillion in bids with a submitted yield range of 7.30%–7.41%, and the FR0106 series, which garnered IDR8.02 trillion in bids at yields ranging from 7.31% to 7.45%. The Government awarded IDR32 trillion, in line with its indicative issuance target of IDR32 trillion, resulting in a bid-to-cover ratio of 2.21x. (MoF)
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