Business · Markets · 2 hrs ago
Indonesia’s 10-year bond yield spread over US falls to 188 basis points
Indonesia’s 10-year government bond yield was 7.17% on October 7, 2026.
Its yield was 188 basis points above the yield on 10-year US Treasury bonds, which stood at 5.28%.
A yield spread is the extra return investors can get from one country’s bonds compared with US government debt, a widely used global benchmark.
Indonesia’s spread was narrower than those of India, the Philippines, South Africa, Mexico and Brazil.
Finance Minister Suahasil Nazara said the smaller gap reflects investor confidence in Indonesia’s economic management and means the government does not need to offer as large a premium to attract investors.
The US yield was at its highest level in almost 23 years, drawing capital back to the United States.
Indonesia’s government says its borrowing plans remain on track, with net debt financing reaching Rp494.3 trillion through September, or 59.4% of its target.
It plans to keep issuing government bonds while managing financing costs and debt risks.
Indonesia’s 10-year government bond yield spread over the US Treasury was 188 basis points on 7 October 2026.
The Indonesian 10-year bond yield was 7.17%, while the US 10-year Treasury yield was 5.28%.
Finance Minister Suahasil Nazara said the narrower spread reflected investor confidence in Indonesia’s economic fundamentals and macroeconomic management.
The spread was below those reported for India, the Philippines, South Africa, Mexico and Brazil.
By September 2026, net government debt financing had reached Rp494.3 trillion, or 59.4% of its target.
- Who
- Indonesia’s government and investors in Indonesian government bonds.
- What
- The 10-year bond yield spread over the US Treasury stood at 188 basis points.
- When
- 7 October 2026.
- Where
- Indonesia; Suahasil made his remarks in Kuningan, Jakarta.
- Why
- Suahasil said the narrowing spread reflected investor confidence in Indonesia’s economic fundamentals and macroeconomic management.
This story does not have two clearly opposing sides.
The yield difference we have to offer to keep Indonesia attractive is getting smaller day by day. In the past, we had to offer 400 or 500 basis points to be attractive. Most recently, on 7 October, we only needed to offer 188 basis points.
America is currently offering an interest rate of 5.28%, and as a result, a lot of capital is returning to America because its interest rate is relatively high, in fact the highest in almost 23 years.
Net government debt financing reached Rp494.3 trillion, equal to 59.4% of its target.
Indonesia’s 10-year bond yield was 7.17%, and its spread over the US Treasury was 188 basis points.
Suahasil Nazara said the spread had narrowed and cited the 188-basis-point figure.
- Indonesia 10-year bond yield
- 7.17% on 7 October 2026
- Spread over US Treasury
- 188 basis points on 7 October 2026
- US 10-year Treasury yield
- 5.28%
- Net government debt financing
- Rp494.3 trillion through September 2026; 59.4% of target
- Foreign investor inflows to Indonesian government bonds
- Rp36.7 trillion year-to-date through 7 October 2026
Sources
Related news
Rupiah Edges Higher to Around Rp17,885 per US Dollar
Indonesia’s Jakarta Composite Index opens 0.26% higher
Indonesia imports about 82% of its milk, agriculture minister says
Medco agrees to buy 10% stakes in four East Kalimantan gas contracts
Rupiah Edges Higher as Oil Prices and US Dollar Index Fall
Local banking agent brings food aid closer to 2,000 families in South Kalimantan
Indonesia’s Main Stock Index Falls 1.01% in Morning Trading
Jakarta’s main stock index falls 1% after opening higher
PGUN says Mandiri could seize pledged shares if borrower defaults
63,789 people reported layoffs in Indonesia from January to September
Pertamina Adds Subsidised Diesel for Fishers in Muara Ciasem
