The benchmark yield on Indonesia’s 10-year government bonds (SBN) rose in trading on October 28. Bisnis.com, citing Investing.com, reported a yield of around 7.70%, while Trading Economics showed 7.65%. The report described the level as the highest since 2020, after yields stayed around 7.0%–7.1% from August through October.

Higher yields generally put pressure on outstanding bond prices, although the effect on a portfolio depends on duration and purchase price. The report linked pressure on SBN to foreign investor outflows and market discussion about a possible change in Indonesia’s classification. That discussion does not confirm that the related rumor is true.

The backdrop included the Fed holding rates at 3.75%–4%, while Bank Indonesia’s policy rate stood at 5.75%. The rupiah was reported at Rp18,103 per U.S. dollar, down 8.56% year to date for the period covered. Bank Danamon economist Irman Faiz gave a base-case projection of a 7.4% 10-year SBN yield at end-2026, with global conditions, the rupiah and the risk premium among key factors.

The projection could change if its assumptions do not hold. Investors should distinguish market yield from coupon and account for price risk when selling before maturity. This is not a transaction recommendation.