Record sukuk yields may make it tough to rein in budget deficit


KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak’s goal of reining in the budget deficit looks set to get tougher as a unit of the nation’s biggest lender predicts borrowing costs on Islamic bonds will climb to a record.

Maybank Islamic Asset Management says benchmark sukuk yields may rise to 5% this year should the United States raise interest rates to 1.25% from a maximum 0.5% now, and if investors price in further tightening in the following 12 months.

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Mark Zuckerberg passes Jeff Bezos to become world’s second-richest person
Resilient cash flow amid GN3 status, says MMAG director
Oil prices flat as Middle East conflict counters ample supply outlook
Asian FX, stocks mixed as Mideast tensions take centre-stage
ECERDC secures RM3.1bil in realised investments in Terengganu, on fast track to achieve RM4.2bil in 2024
Asia shares tentative, oil set for weekly gains on Mideast risks
Singapore tightens anti-money laundering measures
Hong Kong shares reach again for 20-month peak
MSIA: 53% of E&E, semiconductor companies optimistic on business outlook in 4Q
Sime Darby Property’s XME Business Park 2 achieves full take-up at preview

Others Also Read