Daily Economic Research

KBVS ECONOMIC RESEARCH
Friday, 09 January 2026

Macro Highlight :
Rising geopolitical tensions to secure influence in Greenland, Venezuela, and Iran—along with the U.S. withdrawal from 66 UN organizations and President Trump’s proposal for a USD1.5 tn military budget in 2027—have come onto investors’ radar. Looking ahead, geopolitical developments and key U.S. labor market releases—namely nonfarm payrolls, the unemployment rate, and average hourly earnings—are expected to be the main drivers of global financial markets today.

Indonesia’s fixed-income market traded on a selective tone, as concerns over a wider fiscal deficit, following the announcement of a 2025 APBN shortfall of 2.92% of GDP, were partially offset by a stronger external buffer after Bank Indonesia reported a rise in foreign exchange reserves at end-December. Looking ahead, the domestic fixed-income market is expected to remain sensitive to the weakening USD/IDR trend, while adequate forex reserves provide a degree of stability amid ongoing equity market strength and global uncertainty.

We anticipate a marginal increase in the 10Y SUN yield today (9 Jan ‘26), projecting it to range between 6.02% and 6.22%.

 

Regards,    
KBVS Research Team

 

Please click download button below for full report.

Download