Daily Economic Research

KBVS ECONOMIC RESEARCH
Wednesday, 8 April 2026

Macro Highlight :
Donald Trump escalated pressure on Iran by setting a deadline for the reopening of the Strait of Hormuz, warning of severe consequences if unmet, which initially pushed the UST10Y yield higher to around 4.37% before reversing. Looking ahead, investors will focus on the upcoming US CPI release (Cons: 3.40% YoY, Prev: 3.20% YoY) as a key indicator of inflation pressures, with expectations of a sharp increase in Mar '26 amid ongoing energy supply disruptions, while continuing to monitor geopolitical developments as the primary driver of market sentiment.

Government liquidity support appeared to have had only a limited impact on primary SBN demand, as incoming bids in the latest SBSN auction reached IDR30.57 tn (Prev: IDR30.98 tn), indicating slightly softer overall demand. Looking ahead, investors will continue to monitor global geopolitical developments and FX Reserve data as the main driver of market direction.

We anticipate a marginal decrease in the 10Y SUN yield today (8 Apr ‘26), projecting it to range between 6.54% and 6.74%.

 

Regards,
KBVS Research Team

 

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