Indonesia's bond yield has increased this year, in line with rising global economic uncertainty and the weakening of the Rupiah.
However, amid economic uncertainty, investors are demanding higher yields, causing bond prices to generally correct downwards.
According to data from the Indonesian Capital Market Supervisory Board (PHEI), the Indonesia Composite Bond Index (ICBI) reached 392.3604 at the end of trading on Friday, December 27, 2024, up 4.7% year-to-date (ytd) compared to its position at the end of 2023.
During this period, the Indonesia Bond Indexes (INDOBeX) Composite Effective Yield rose 6.46% (ytd), reflecting a general increase in domestic bond yields.
Meanwhile, the INDOBeX Composite Clean Price fell 2.23% (ytd), indicating a general decrease in net bond prices.
Breaking it down by type, the performance of corporate bonds this year has been stronger than that of government bonds.
Between December 29, 2023, and December 27, 2024, the INDOBeX Corporate Total Return rose 7.64% (ytd), reflecting an increase in the overall return on corporate bonds.
During this period, the INDOBeX Corporate Effective Yield increased by 6.96% (ytd), and the INDOBeX Corporate Clean Price fell by 0.68% (ytd).
Meanwhile, the INDOBeX Government Total Return rose 4.52% (ytd), not as high as the increase in the overall return on corporate bonds.
The INDOBeX Government Effective Yield rose 6.53% (ytd), and the INDOBeX Government Clean Price fell 2.32% (ytd).