Indonesia <http://topics.bloomberg.com/indonesia/>’s dollar Islamic bonds fell for a second week, after a record decline last quarter, as concern inflation will quicken outstripped optimism the nation will win an investment-grade rating.
The yield on Indonesia’s 8.8 percent sukuk due in April 2014 has climbed 68 basis points to 3.33 percent since reaching a record-low 2.65 percent on Oct. 14, according to the Royal Bank of Scotland Group. It jumped 23 basis points in the fourth quarter. Indonesian yields may rise further because inflation will accelerate this year as fuel subsidies are reduced and rice prices increase. http://www.bloomberg.com/news/2011-01-13/indonesia-sukuk-drop-as-inflation-curbs-demand-islamic-finance.html
