08 January 2026
The domestic bond market strengthened in December 2025 following selling pressure in the previous month. The yield on the 10-year Indonesian government bond (SUN10Y), which had risen to 6.30% at the end of November, declined amid improving market sentiment and growing expectations of global monetary policy easing.
Positive sentiment was primarily driven by the outcome of the December 2025 Federal Open Market Committee (FOMC) meeting, at which the Federal Reserve cut the Federal Funds Rate by 25 basis points (bps) to 3.75%, in line with market expectations. The yield on the 10-year US Treasury (UST10Y) declined to 4.14% before edging higher to around 4.20% due to profit-taking. In tandem with these developments, the SUN10Y yield fell from approximately 6.26% at the beginning of December to around 6.17% ahead of the FOMC meeting.
In the domestic market, yield movements remained relatively stable. The SUN10Y yield was recorded at 6.16% at the final government bond auction of 2025. Ahead of Bank Indonesia’s Board of Governors’ Meeting (RDG), with market expectations for the BI-Rate to remain unchanged at 4.75%, the SUN10Y yield declined further to 6.12%, reflecting a continued constructive stance among investors toward the domestic bond market.
On an annual basis, the SUN10Y yield opened 2025 at 6.95%, with relatively high volatility throughout the year. The highest yield was recorded in mid-January at 7.27%, while the lowest yield occurred in mid-October at 5.92%. By the end of 2025, the SUN10Y yield closed at 6.02%.
From the supply side, the government raised its target for government securities (SBN) issuance through auctions in 2025 to IDR 916.65 trillion, an increase of 2.93% from the initial target. Despite the higher supply, investor demand remained strong, with total incoming bids throughout the year reaching IDR 2,975.22 trillion. The highest auction demand was recorded on 12 August 2025, with incoming bids of IDR 162.32 trillion and a total awarded amount of IDR 32 trillion.
Product Recommendation
| FIXED INCOME FUND | |
|---|---|
| MIDU | MIDU invests in Bond Instruments with a Medium-Term segment and is categorized as low to medium risk. Investors bear the risk associated with the Bond Portfolio. |
| IDAMAN | IDAMAN invests in Indonesian Government USD Bonds with a short duration and is categorized as medium risk. Investors bear the risk associated with the Bond Portfolio. |
| MIDO2 | MIDO2 invests in Indonesian Government Rupiah Bonds with a long duration and is categorized as high risk. Investors bear the risk associated with the Bond Portfolio. |
| BALANCED FUND | |
| MIA | MIA invests in Equities, Bonds and Money Market with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
| MISB | MISB invests in Sharia Equities, Sukuk and Money Market Sharia with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
For More Information
Contact Mandiri Investasi – (021) 526 3505
Mandiri Investasi Email – [email protected]
Mandiri Investasi Website – www.mandiri-investasi.co.id
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The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.
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