Indonesia failed to reach its sukuk auction target for the first time since October as buyers sought higher yields to compensate for accelerating inflation.The finance ministry sold Rp 1.05 trillion ($108 million) of five- and 24-year Islamic bonds on Feb. 19, short of its Rp 1.5 trillion goal, it said in a statement. Investors asked for rates as high as 6 percent on the five-year notes that are yielding 5.16 percent in the secondary market. Borrowing costs on Indonesia’s 10.25 percent sukuk due 2030 have risen 14 basis points to 6.38 percent in 2013.
Sukuk Auction Fails in Indonesia on Inflation Risks
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