Malaysian Yields at 4-Month High on Food Costs

Malaysia’s Islamic borrowing costs increased to a four-month high on concern rising food prices will drive up the lowest inflation in Southeast Asia, as the government raises spending before next year’s elections.

Yields on 10-year sukuk rose 20 basis points this month to 3.69 percent, after reaching a record low of 3.48 percent on July 26, according to Bursa Malaysia. In Indonesia, rates on similar-maturity debt fell 32 basis points to 6.22 percent. Investors submitted bids for 1.68 times the 4 billion ringgit ($1.3 billion) of 2022 Islamic bonds on offer at an auction on Sept. 13, the least since March 2011, central bank data show.

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