JAKARTA: The yield premium investors demand to hold Indonesia’s sukuk over Malaysia’s surged to a two-year high this week after interest rates were raised to stem quickening inflation and support the plunging rupiah.
The difference between Indonesia’s 11.95% local–currency Islamic bonds due August 2018 and Malaysia’s five-year benchmark ringgit notes reached 4.59 percentage points on July 29, the widest since April 2011, data compiled by Bloomberg show.
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