- Persistent foreign outflows from the SBN market are keeping the Rupiah on track to reach its lowest historical level, despite the sidelining DXY index.
- Lower foreign demand and BI’s pro-stability guideline risk driving SBN yields higher, which may threaten the fiscal posture.
- Ample domestic liquidity conditions open an opportunity for the government to lower its interest and refinancing burdens via an expanded debt-switching mechanism.
