The need for short-term funds, and the yield rate for the 4-year sukuk, PBS026, which is below 5%, has made the government aggressive in winning this series in the auction. This yield was the smallest compared to PBS017 and PBS028, which were 5.28% and 7.13%, respectively. The smaller the yield, the lower the cost of funds will be for the government. The government won an incoming bid for PBS026 worth IDR 1.65 trillion (1.73x bid to cover ratio) of the total bid for this series of IDR 2.85 trillion. On the other hand, market players are also interested in the 4-year PBS026 because it offers a rate of return of up to 6.625%, compared to the 5-year PBS017 which is only 6.125%. For the record, the government closed the sukuk auction in 2020 by winning IDR 6.14 trillion from the total incoming bid of IDR 27.76 trillion.
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