Daily Economic Research

KBVS ECONOMIC RESEARCH
Monday, 5 January 2026

Macro Highlight :
The escalation of geopolitical tensions in Latin America, following U.S. military actions against Venezuela, has reignited global risk-off sentiment. We are concerned that this development may introduce renewed volatility, with a heightened risk of further deterioration in global risk sentiment.

Indonesia’s fixed-income market traded on a selective and mixed tone, as modest gains in conventional bonds were offset by weakness in the Sharia. Looking ahead, market sentiment may be influenced by heightened geopolitical risks following recent U.S. actions in Venezuela, including the capture of the country’s president last Friday, which is expected to add volatility to global markets.

We anticipate an increase in the 10Y SUN yield today (5 Jan ‘26), projecting it to range between 5.95% and 6.15%.

 

Regards,
KBVS Research Team

 

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