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Indonesia Embraces Higher Borrowing Costs to Sell More Bonds

  • Tails widen across the tenors at Tuesday’s debt auction
  • Bid-to-cover ratio declines to lowest level in a year
General Economy in Jakarta Ahead of Bank Indonesia's Monetary Policy Meeting
Photographer: Dimas Ardian/Bloomberg
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Indonesia offered higher yields to sell the most bonds in two months, testing appetite for emerging-market assets as the government continues to build up a buffer for stimulus spending.

The finance ministry sold 21.68 trillion rupiah ($1.48 billion) of non-Islamic debt, excluding T-bills on Tuesday. That’s the biggest since the sale in mid-February and compared with just 3.75 trillion rupiah at the previous conventional debt auction two weeks ago. The larger amount sold saw the bid-to-cover ratio plunge to 1.86, the lowest in a year.