#Saudi dollar bonds post losses as investors brace for pain to come - Reuters

Saudi dollar bonds post losses as investors brace for pain to come - Reuters:

Saudi government dollar bonds posted losses on Monday after the finance minister said Riyadh would have to take painful measures to deal with the impact of the coronavirus and Moody’s downgraded the country’s ratings outlook.

Moody’s cut Saudi Arabia’s outlook to negative from stable on Saturday, citing higher fiscal risks due to the crash in oil prices, and uncertainty about the government’s ability to offset oil revenue losses and stabilize its debt in the medium term.

By 0736 GMT on Monday, Saudi Arabia’s 35-year bonds due in 2055 had lost 1.4 cents to trade at 89.8 cents on the dollar, while its 40-year bonds due in 2060 shed 1.6 cents to trade at 98.2 cents on the dollar, Refinitiv data showed.

The country saw steep losses on its other bonds as well, while most other sovereign bonds in the Gulf region saw smaller losses in early trade and some even strengthened marginally.