Indonesia–JGB 10Y Spread

This spread is the yield on Indonesia's 10-year government bond minus the yield on the Japanese 10-year government bond (JGB). It represents the carry-funding differential between the two markets. Because the yen is a primary global funding currency, a wider spread makes Indonesia a more attractive target for yen-carry trades, while a narrowing spread or a Bank of Japan tightening move can trigger carry unwinds.