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2026-11-03 18:56:25
[Gulf Bonds Under Pressure as US-Iran Diplomatic Positives Fail to Boost Buying] ⑴ According to Mitsubishi UFJ Bank, despite market expectations of a potential resumption of diplomatic communication between the US and Iran, Gulf sovereign and bank bonds continued to be sold off. ⑵ The bank's credit trading team stated that ETFs and institutional funds were primarily selling on Monday, with buying of long-term bonds weakening significantly; the spread between Qatari 2049 and 2050-year sovereign bonds widened by 7 basis points, and the spread between Abu Dhabi sovereign bonds widened by 3 to 5 basis points. ⑶ Saudi sovereign bond spreads remained relatively stable, demonstrating relative resilience within the Gulf region. ⑷ Expectations of geopolitical easing have already been partially priced in, and funds are more wary of valuation pressures from rising long-term interest rates.
