US Treasury Yields Fall as Rupiah and Stocks Rise

RRI.CO.ID, Jakarta - The 10-year US Treasury yield fell below 5.3%. By Friday afternoon, the yield was around 5.2%, while the US dollar Index also weakened to 102.

The decline in US Treasury yields came alongside lower Brent crude oil prices. Brent crude fell to around $99.8 per barrel, easing pressure on global markets.

The Indonesian rupiah responded positively and strengthened to close at 17,868 per US dollar. The stronger rupiah also helped support the Indonesian stock market.

The Jakarta Composite Index, or IHSG, had earlier fallen to 5,979. However, it reversed direction during the second trading session and moved into positive territory.

The IHSG finally closed 0.46% higher at 6,036.888. Meanwhile, most Asian stock markets ended mixed during the trading session.

Several positive market factors supported the rupiah and IHSG at the end of the week. However, it is still difficult to know whether this improvement will continue or only be temporary.

Investors are now watching the latest geopolitical situation in the Middle East. If tensions do not increase and the conflict can be resolved soon, inflation pressures could ease and reduce pressure for higher investment returns.

Lower inflation pressure could also reduce selling pressure in the bond market. However, uncertainty remains in global financial markets as concerns about a possible escalation of the conflict continue.

Meanwhile, global gold prices rose to around $4,184 per troy ounce. This is equivalent to approximately IDR 2.41 million per gram, while gold prices continue to benefit from lower global crude oil prices.

The outlook remains uncertain because markets are still facing the possibility of higher benchmark interest rates through the end of 2026. Investors will continue to monitor interest rates, oil prices, currency movements, and geopolitical developments.

Writer: Gunawan Benjamin (Economist, UISU)