- Previous policy actions mean BI is may not adjust its policy stance materially in response to recent moves by major central banks, helping to keep SBN yields relatively stable.
- Tighter control over public spending and debt issuance so far this year has also helped keep Indonesia’s benchmark yields stable.
- The government may continue to look to the FX bond market for opportunities to lower its funding costs, adding to the urgency of avoiding further Rupiah weakness.
