Daily Economic Research

KBVS ECONOMIC RESEARCH
Tuesday, 23 December 2025

Macro Highlight :
Rising U.S. Treasury financing needs, reflected in the upcoming auction schedule—USD69 bn for the 2-year tenor on Monday, USD70 bn for the 5-year tenor on Tuesday, and USD44 bn for the 7-year tenor on Wednesday—coupled with market reassessment of the Federal Reserve’s forward policy stance, exerted upward pressure on U.S. Treasury yields in the previous trading session. Looking ahead, in addition to continued monitoring of demand dynamics in the ongoing U.S. Treasury auctions, market participants are expected to focus closely on the release of U.S. PCE inflation data and durable goods orders, which are likely to serve as key near-term catalysts for rates and broader financial market movements.

Indonesia’s fixed-income market traded on a selective and cautious tone, with the Indonesia Composite Bond Index (ICBI) and Indonesia Sukuk Index (ISIX) inching up by +0.02% to 439.49 and +0.02% to 401.14, respectively, supported by buying interest at the long end that offset selling pressure in the belly of the curve. Looking ahead, the domestic fixed-income market is expected to remain sensitive to forex, with the USD/IDR exchange rate nearing 16,800, its highest level since April, as well as the release of key U.S. economic data scheduled for 23 December, both of which may continue to shape investor positioning.

We anticipate a marginal increase in the 10Y SUN yield today (23 Dec ‘25), projecting it to range between 6.05% and 6.25%.

 

Regards,
KBVS Research Team

 

Please click download button below for full report.

Download