05 June 2025
Domestic Resilience
In May 2025, the global bond market was shaped by a cautious macroeconomic environment characterized by growth concerns and ongoing tariff uncertainties. The U.S. Federal Reserve maintained a watchful stance amid persistent inflation pressures and delayed tariff implementations, which contributed to a modest decline in short-term yields but kept longer-term yields somewhat elevated due to inflation fears. Yield curves in major G7 economies, including the U.S. and Europe, continued to steepen as markets priced in further monetary easing in the near term while factoring in tariff-driven inflation risks. European bonds, particularly German Bunds, outperformed U.S. Treasuries, benefiting from a weaker U.S. dollar and ECB policy easing, with Bund yields falling on lower inflation expectations. Inflation breakevens declined slightly across maturities, reflecting subdued energy prices and tariff delays, although concerns about higher inflation in Q2 and Q3 persisted.
In the Indonesian bond market, yields on 10-year government bonds hovered around 6.84% to 6.91% in mid-May, slightly easing from earlier levels despite a modest rise in U.S. Treasury yields to approximately 4.4% – 4.5%. The rupiah appreciated modestly against the U.S. dollar, strengthening to around IDR 16,215–16,545 per USD, supported by improved market sentiment, fiscal discipline, and Bank Indonesia’s recent rate cut to 5.50%. This BI rate cut bolstered liquidity and investor confidence, contributing to further easing of government bond yields, especially in short- to medium-term tenors. Indonesia’s fiscal position improved, posting a surplus of IDR 4.3 trillion in April 2025, driven by a significant revenue increase and controlled spending, which helped maintain confidence in sovereign debt. Despite global uncertainties, Indonesia’s bond market showed resilience, supported by stable currency performance, active government bond auctions, ongoing fiscal prudence, and accommodative monetary policy.
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 Whatsapp – 0816 86 0003
Mandiri Investasi Email – [email protected]
Mandiri Investasi Website – www.mandiri-investasi.co.id
Moinves Website – www.moinves.co.id
DISCLAIMER
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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