Benchmark global bond yields continued to trend down in 2Q19 amid ongoing trade tensions, central bank dovishness and signs of slowing economic growth, according to a report by NBK’s Research Department.
GCC bond yields tracked their global counterparts lower and indeed saw steeper declines partly on increased demand due to EMBI index inclusions.
Investors appeared to be relatively unswayed by recent geopolitical tensions in the Gulf, though a further escalation or alternatively falls in oil prices and revenues that jeopardise the fiscal situation pose a downside risk to GCC fixed income markets.
Meanwhile, regional debt issuance hit a record $40 billion in 2Q19, dominated by sovereigns and quasi-sovereigns and led by Saudi Arabia.
https://www.omanobserver.om/gcc-debt-issuance-at-record-high-in-q2-2019/