March 23, 2023

Dubai Week

Complete Dubai News World

These are the risk factors for global bond yields

These are the risk factors for global bond yields

In an interview with “Al Arabia”, Mohd. , And the ambiguity of monetary policy.

He pointed to the excellence of Gulf bond issues exceeding $ 125 billion. This figure is more than 30% of emerging market outputAs a result, the importance of the Gulf countries in these markets is increasing, and next year’s publications are expected to exceed $ 120 billion, with a decline in sovereign output and an increase in energy output, in addition to the financial sector, the aviation sector, investment companies in the Gulf and real estate companies.

In light of expectations that the Federal Reserve (US Federal Reserve) will raise interest rates three times next year to curb inflation, Kronfol agreed with the expectation that the US 10-year bond yield will not exceed 2% by 2022.

He noted that with the high quality of Gulf securities and Suu Kyi’s assets, and the increase in oil prices, the expected performance of fixed income markets in the Gulf countries will be better than emerging or global markets based on performance indicators. For strong action of bonds and securities issues in the Gulf region in 2021.

Globally, analysts expect U.S. 10-year Treasury yields to not exceed 2% next year, compared to the current yield of 1.47%.

This comes amid huge cash flow in the markets due to stimulus packages taken by governments to counter the effects of the corona, which will motivate investors to invest more money in debt instruments.