Meanwhile, the yield on 2-year SBN rose to 6.66% and the benchmark 10-year SBN rose to 7.05% in line with market mechanisms and rising US Treasury yields (Graph 8.b). Bank Indonesia sold short-term SBN and purchased long-term SBN in the secondary market (twist operation) as part of the Rupiah stabilization strategy, while simultaneously dampening the impact of rising US Treasury yields.
Ample liquidity has supported relatively limited increased in bank lending rates amid rising money market rates in line with the increase of the policy rates. In August-November 2022, Bank Indonesia raised BI7DRR by 175bps to 5.25% as a front loaded,  23  Graph 8.a. Banking Interest Rates  Graph 8.b.