Bonds fall on inflation, weaker currency<\/p>\n
Shamim Adam, Bloomberg\/Singapore<\/p>\n
Indonesia's four-year bonds fell for a fifth day as concern about
\naccelerating inflation and a weaker currency led some investors
\nto sell the securities.<\/p>\n
The rupiah last week had its biggest slide since August. Bank
\nIndonesia, the central bank, has raised its benchmark interest
\nrate six times since August to stem rising consumer prices.
\nIndonesian bonds are poised for the first annual decline since at
\nleast 2001, according to an index compiled by HSBC Holdings Plc.<\/p>\n
\"People are still concerned about the outlook for inflation
\nnext year and the weakening rupiah is adding to further
\nuncertainties for bondholders,\" said Donsyah Yudistira, a fixed-
\nincome analyst at PT Mandiri Sekuritas in Jakarta.<\/p>\n
The yield on the 14 percent bond due in June 2009, one of the
\nmost-traded securities, rose 1 basis point, or 0.01 percentage
\npoint, to 13.27 percent as of 5:10 p.m. local time, according to
\nthe Inter Dealer Market Association in Jakarta.<\/p>\n
The price of the bond fell 0.024, or Rp 240 per Rp 1 million
\nface amount, to 102.984. Prices move inversely to yields.<\/p>\n
Investors in Indonesian bonds have lost 1.8 percent this year,
\nthe worst performance among HSBC's Asian government bond indexes.<\/p>\n
Inflation reached a six-year high of to 18.4 percent in
\nNovember. Inflation is unlikely to slow until the third quarter
\nof next year and will \"still be double digit,\" Bank Indonesia's
\nSenior Deputy Governor Miranda Goeltom said on Dec. 2.<\/p>",
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