Daily Economic Research

KBVS ECONOMIC RESEARCH
Thursday, 08 January 2026

Macro Highlight :
Geopolitical risk concerns were partially offset by weaker-than-expected U.S. labor market data, which reopened room for deeper Fed rate cuts this year than previously anticipated. Looking ahead, geopolitical developments, the SNB monetary policy assessment, and U.S. weekly initial jobless claims are expected to be key drivers of global financial markets today.

Indonesia’s fixed-income market traded on a neutral tone, as continued weakness in the USD/IDR softens bond demand, even as the IDX recorded another intraday all-time high, while global conditions remained relatively stable following recent U.S. geopolitical actions. Looking ahead, the domestic fixed-income market is expected to remain driven by selective positioning, as investors continue to balance equity market momentum, USD/IDR trends, and expectations around the timing of potential policy easing, as disaster-led inflation still haunts the economy.

We anticipate a marginal decrease in the 10Y SUN yield today (8 Jan ‘26), projecting it to range between 5.97% and 6.17%.

 

Regards,    
KBVS Research Team

 

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