Indonesia’s global sukuk rallied for a fourth month, the longest winning streak in more than a year, on speculation a cut in government fuel subsidies will boost demand at auctions in the coming quarter. Yields on the 8.8 percent dollar-denominated Islamic bonds due in 2014 dropped 29 basis points in September to a record low of 1.86 percent, data compiled by Bloomberg show.
The premium over similar-maturity Treasuries narrowed 34 basis points to 140 basis points, the least since the Asian nation sold the notes in 2009. Indonesia is looking to offer international sukuk in the fourth quarter, Robert Pakpahan, acting director general of the debt management office, said last month………………………………………..Full Article: Source