Daily Economic Research

KBVS ECONOMIC RESEARCH
Friday, 12 December 2025

Macro Highlight :
As expected, Powell’s remarks in the previous day’s FOMC meeting—reaffirming the continuation of Fed Rate cuts and the ongoing monthly purchase of USD40 bn in short-tenor U.S. Treasuries, while signaling that further easing will remain limited due to persistent inflation risks—drove a divergence in U.S. government bond yields across the curve. Today, a scheduled speech from Fed member Austan Goolsbee is expected to be a key market mover.

Indonesia bond markets seized on the Fed’s confirmed cut as a fresh mandate to rally, driving the Indonesia Composite Bond Index (ICBI) up by +0.09% to a sturdy 438.2836. The positive sentiment also buoyed the Sharia segment—pushing the ISIX up +0.06% to 399.82—though we observed a slight divergence in the SBSN space where the 3-year PBS030 yield widened by roughly 3 bps to 5.28%, lagging the broader conventional rally.

We anticipate a decrease in the 10Y SUN yield today (12 Dec ‘25), projecting it to range between 6.04% and 6.24%.

 

Regards,
KBVS Research Team

 

Please click download button below for full report.

Download