Indonesia Sells $1 Billion of Debt at Top Yield Since 2010
11 Jul 2013 07:24 GMT
 
Indonesia sold $1 billion of 10-year dollar bonds at the highest yield since 2010 as speculation the Federal Reserve will pare stimulus curbs demand f (more)

Indonesia sold $1 billion of 10-year dollar bonds at the highest yield since 2010 as speculation the Federal Reserve will pare stimulus curbs demand for emerging-market assets.

The country issued the notes due October 2023 to yield 5.45 percent, or 2.87 percentage points more than 10-year U.S. Treasuries, Robert Pakpahan, director general at the debt management office in Jakarta, said in a mobilep-hone text message. That was the highest rate for a 10-year bond from Indonesia since it paid 6 percent in January 2010, data compiled by Bloomberg show.

Emerging-market sovereign bonds have tumbled since May 22, when the Fed signaled plans to scale back $85 billion a month of debt purchases that drove borrowing costs to record lows. The extra yield paid at the most recent sale is more than a full percentage point above the 1.75 percentage point premium the country paid in April, when it sold notes to yield 3.5 percent, Indonesia's lowest-ever rate for a non-Islamic offering.


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