Daily Economic Research

KBVS ECONOMIC RESEARCH
Wednesday, 17 June 2026

Macro Highlight :
The yield on the UST10Y fell to 4.44% (Prev: 4.50%) on Tuesday, reaching its lowest level in nearly three weeks as optimism grew over a potential peace agreement between the US and Iran, which could help restore energy flows from the Middle East, moderate oil prices, and reduce the need for further aggressive monetary tightening. Looking ahead, investors are expected to monitor the two-day FOMC meeting, with policymakers widely expected to leave the federal funds rate unchanged at 3.50%–3.75%. The meeting will also mark the first FOMC meeting chaired by Kevin Warsh, with investors closely watching the Fed’s updated economic projections and policy guidance alongside geopolitical developments as key drivers of near-term market direction.

On the last trading day, market sentiment improved following easing geopolitical tensions in the Middle East, boosting risk appetite across domestic financial markets. Looking ahead, investors are expected to continue monitoring geopolitical developments alongside the upcoming SUN auction and Bank Indonesia’s RDG meeting, as key drivers of near-term market direction.

We anticipate a marginal decrease in the 10Y SUN yield today (17 Jun ‘26), projecting it to range between 7.24% and 7.44%.

 

Regards,
KBVS Research Team

 

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