Investors fleeing longer-dated sukuk
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Kuala Lumpur
MALAYSIA'S Islamic bond investors are fleeing longer-dated sukuk as accelerating inflation adds to the risk of outflows amid a global emerging-markets selloff.
The difference in yields between 2025 Shariah-compliant securities and three-year debt widened 14 basis points this year to average 67 in August, the most since May 2014. Data last week showed July's inflation rate was the highest in 11 months, while foreign ownership of bonds in Malaysia fell to the lowest since 2012.
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