Corporate Bond Market Shows Continued Yield Decline Trend

Increased Issuance and Demand

The Indonesian corporate bond market is witnessing a significant trend where yields are expected to continue declining through the end of 2025. According to PT Pemeringkat Efek Indonesia (Pefindo), the third week of November 2025 saw Rp1 trillion worth of corporate bond issuances, all of which came from PT Bussan Auto Finance. This follows substantial issuances of over Rp11 trillion in the first two weeks of November, indicating strong market demand.

Expert Analysis on Yield Movement

David Sumual, Chief Economist at Bank BCA, noted that the downward trend in corporate bond yields is likely to persist in line with market expectations of monetary policy easing. Sumual emphasized that while corporate bond yields may continue to decline, they are expected to remain above government bond yields. The current market dynamics suggest that investor appetite for corporate bonds remains robust, supported by favorable monetary conditions.

Market Implications

The continued decline in corporate bond yields reflects growing investor confidence in the Indonesian market. As monetary easing continues to be anticipated, the demand for corporate bonds is likely to remain strong, potentially driving yields lower. This environment presents both opportunities and challenges for issuers and investors alike in the corporate bond market.