Iraq Bonds Gain Most in 11 Months on Maliki Resignation Optimism - Bloomberg

Iraq Bonds Gain Most in 11 Months on Maliki Resignation Optimism - Bloomberg:



"Iraqi government bonds advanced, sending yields down the most in 11 months, on speculation Iraqi Prime Minister Nouri al-Maliki’s resignation will improve the country’s security situation.



The yield on the dollar-denominated debt maturing in January 2028 fell 27 basis points to 6.88 percent at 6:10 p.m. in London, the biggest decline since September 2013. The rate decreased 61 basis points in the past five days, the first weekly retreat this month. The ISX General Index of equities in Baghdad gained 3.6 percent yesterday.



Maliki’s move ends a political impasse and may enable Prime Minister-designate Haidar al-Abadi to pull together a more inclusive government better able to counter Islamist militants advancing in the north. Iraq is riven with sectarian and ethnic rifts that threaten to tear the country apart. Yields on the government’s 2028 securities have risen 59 basis points since fighters from the Islamic State captured the northern city of Mosul on June 10."



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