Saudi Bonds Sink as Row With U.S. Over Missing Writer Escalates - Bloomberg

Saudi Bonds Sink as Row With U.S. Over Missing Writer Escalates - Bloomberg:

The growing diplomatic row over the disappearance of Saudi columnist Jamal Khashoggi reverberated through the country’s bond market.

The yield on the kingdom’s $5 billion debt due 2028 jumped to a record and 12-month riyal forwards headed for the biggest increase in more than three years in the offshore market. The Tadawul All Share Index added as much as 2.9 percent, rebounding from yesterday’s retreat amid speculation government-related funds are boosting the securities.

The U.S. administration is losing patience with the kingdom’s silence over Khashoggi’s whereabouts, and is weighing action against its Middle Eastern ally. Saudi Arabia has denied accusations that it murdered the writer. The escalation in tension between the Gulf state and the U.S. has raised concerns about whether the kingdom can attract the foreign investors needed to overhaul its economy. The nation has been reforming its financial markets and has won inclusion in FTSE Russell and MSCI Inc. indexes for emerging markets.