Global investors are buying up Abu Dhabi and Qatar government debt as a haven against tumbling stock markets, pushing yields on the bonds to historic lows.
The trend has been building for weeks now, sending some Gulf government bonds to their lowest-ever yields. The plunge also marks a sharp reversal of high yields seen when the government-owned group Dubai World announced a debt repayment standstill two years ago. Bond yields move inversely to prices.
"People are fleeing to safe assets, and Qatar and Abu Dhabi bonds are seen as safe assets," said Abdul Kadir Hussain, the chief executive of Mashreq Capital in Dubai.
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