State Sukuk Auction Remains Successful Despite Declining Yield

By Editorial Team 18/09/2019
Summary

The downward trend in the benchmark interest rate increased investor demand for Government Sharia Securities (SBSN) or Government Sukuk. During the auction on Tuesday (9/17), the government successfully scooped Rp 7.05 trillion in funds from the total incoming bids of Rp 29.03 trillion.

The results of this latest Sukuk auction were slightly higher compared to the achievement of the previous auction. The government absorbed funds worth Rp 7 trillion from the total incoming bids of Rp 21.81 trillion. At the auction last Tuesday (17/9), the government released six Sukuk (SPNS04032020, PBS014, PBS019, PBS021, PBS022, and PBS005) with various tenors, ranging from one year to 25 years. PBS005 has the highest weighted average yield of 8.28 percent, while the SPNS04032020 has 5.91 percent.

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