Mena countries’ dollar-denominated sovereign bonds rose on Tuesday, with many hitting multi-week highs after Iran and Israel appeared to agree a ceasefire.
Mena bonds had been under selling pressure since President Donald Trump hiked US tariffs in April, prompting unprecedented volatility in debt and equity markets.
Israel’s June 13 attack on Iran sparked a further sell-off of Mena sovereign bonds, but Trump’s declaration of a ceasefire between the two has sparked a rebound in regional debt prices.
Saudi Arabian government bonds rose 0.7 percent to an 11-week high, UAE federal government debt climbed 0.4 percent to a seven-week peak and Egypt sovereign bonds surged 2.1 percent.
Bond prices change little compared with stock prices, so such daily moves are considered large.
Jordanian sovereign bonds rose 1 percent and Israeli government debt edged 0.3 percent higher.
Gulf stock markets also rallied in early trading on Tuesday. Dubai’s index was up 2.7 percent as of 12.21pm local time.
Air Arabia among the biggest gainers, rising 6.9 percent. The regional aviation industry had suffered disruptions as the Iran-Israel conflict intensified.
Saudi Arabia’s benchmark climbed 1.4 percent and Abu Dhabi’s measure gained 1.9 percent.
