Monday 26 March 2012

Saudi Borrowing Costs Rise to 10-Month High as Lending Picks Up - Bloomberg

Saudi Arabia’s one-year and six- month treasury bill yields rose to 10-month highs after loan growth reached the fastest pace in almost three years, lifting borrowing costs in the world’s largest oil exporter.
The Persian Gulf nation paid 0.58 percent on one-year notes at its weekly auction today, up four basis points from last week’s sale, data compiled by Bloomberg show. The yield, which has risen in the last four auctions, is up six basis points this month to the highest level since May. The yield on six-month notes gained two basis points to 0.456 percent, also the highest in 10 months.
Borrowing costs are rising in the largest Arab economy as it pursues plans to spend more than $500 billion to develop infrastructure, build homes and create jobs. Claims on the private sector grew 12.1 percent in February, the fastest pace since March 2009, according to central bank data. Treasury-bill sales rose 3.8 percent in February to 130.8 billion riyals ($35 billion), the first monthly increase since May.

No comments:

Post a Comment