Investors in Islamic bonds are poised for a nerve-racking time when fixed-income markets reopen today, after UAE sukuk yields hit their highest level all year on Friday.
Bond yields move in the opposite direction from prices and are heavily influenced by US treasury bond rates.Average yields for Islamic bonds on the HSBC/Nasdaq Dubai UAE US dollar sukuk index rose 40.8 basis points and closed higher still at 4.48 per cent on Friday, the highest level since January last year. Funds tracking the index are now making losses, with total returns on the index down 1.4 per cent year-to-date.
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