Daily Economic Research

KBVS ECONOMIC RESEARCH
Thursday, 11 December 2025

Macro Highlight :
As expected, the Federal Reserve lowered its policy rate by 25 bps at yesterday’s FOMC meeting. Today, market reactions to the Fed’s policy decision and updated economic projections are expected to be the primary drivers of global financial markets, alongside the release of US weekly initial jobless claims and the US30Y auction.

The Indonesia fixed income market maintained a defensive yet constructive stance on Wednesday, with both the Indonesia Composite Bond Index (ICBI) and the Indonesia Sukuk Index (ISIX) edging higher by 0.04% to close at 437.89 and 399.57 respectively, as investors positioned themselves for the pivotal Federal Reserve policy decision. This cautious optimism extended to the Sharia segment, supported by a steep yield curve that saw the short-tenor PBS030 yield tighten by 0.8 bps alongside a 0.9 bps compression in the long-tenor PBS038, confirming that domestic liquidity remains ample enough to absorb supply even as global event risks loom.

We anticipate decrease in the 10Y SUN yield today (11 Dec ‘25), projecting it to range between 6.03% and 6.23%.

 

Regards,
KBVS Research Team

 

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