Daily Economic Research

KBVS ECONOMIC RESEARCH
Monday, 19 January 2026

Macro Highlight :
The US 10-year Treasury yield climbed by +4.9 bps to 4.23% on Friday, its highest level in more than four months, as investors reacted to renewed political uncertainty surrounding the Federal Reserve and a reassessment of policy expectations. The tariff rate could be raised to 25% by June 1 if no agreement is reached on what he described as the “complete and total purchase of Greenland.” The announcement has triggered heightened concerns across Europe, with regional leaders expected to convene an emergency meeting in the coming days to discuss potential retaliatory measures, including tariffs on up to EUR93 billion worth of US goods.

Amid consecutive all-time highs in the JCI over the past few days, supported by continued foreign net buying of IDR0.95 tn on Friday, the fixed income market showed notable weakness. Looking ahead, further Rupiah movements, amid escalating political and trade tensions, are expected to continue weighing on the currency and may exert additional pressure on the domestic fixed income market.

We anticipate a marginal increase in the 10Y SUN yield today (19 Jan 2‘6), projecting it to range between 6.15% and 6.35%.

 

Regards,    
KBVS Research Team

 

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