Bahraini Shiites chant slogans during the funeral of Mahmud Mekki. Photograph: AFP/Getty Images
The cost of insuring Bahrain’s government debt rose for a fifth day on concern political unrest will intensify throughout the Middle East as governments crack down on pro-democracy demonstrations.
Credit-default swaps on Bahrain rose 18 basis points to 304, the highest since July 2009, according to CMA. Swaps on Saudi Arabia, seen as measure of confidence in the country although they reference no debt, climbed 10.5 basis points to 137, the highest in 19 months.
Uprisings that toppled autocratic leaders in Tunisia and Egyptare spreading to Libya, Iran, Algeria and Yemen as well as Bahrain, triggering concern they may extend to Saudi Arabia, holder of one fifth of the world’s oil reserves. Clashes in Bahrain, a close Saudi ally, may intensify as protesters rally after the funeral of two men killed by security forces.
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