Jakarta: The Islamic bonds or Sukuk managed by the Indonesian government experienced decline in the yields and government had to sell them out at little lower cost as compared to the previous auctions.
According to the Finance Ministry of Indonesia, country’s finance ministry sold 1.1 trillion rupiah ($96.68 million) of Shariah bonds this week with most yields lower than the previous auction.
The ministry’s debt office said that the country sold 748 billion rupiah of six-month Shariah T-bills at a yield of 6.25887 percent, down from 6.71615 percent on September 3.
It also sold 199 billion rupiah of 30-year project-based sukuk with the yield down to 9.18435 percent from 9.43750 percent earlier this month. The seven-year project-based sukuk was sold for 153 billion rupiah with the yield at 8.31144 percent.
Total bids were 6.49 trillion rupiah and the highest bid-to-cover ratio was 7.95 from six-month Shariah T-bills.