Mubasher: GCC sovereign debt yields were volatile in the second quarter and the first half of 2016, despite high issuances resulting from strong sovereign activity supported by stable oil prices  and limited global volatility.

Gross issuances totalled $55 billion in H1-16,  with $36 billion added in Q2-16, compared to $74 billion issued in 2015, according to the National Bank of Kuwait’s (NBK) report.

Sovereign bond yields for Dubai, Abu Dhabi and Qatar lost from 21 to 23 basis points in a five- to six-year period to stand at 3.33%, 1.90% and 2.37%, respectively.

Sovereigns accounted for nearly 75% of gross issuance in Q2-16, issuing $27 billion.

“With liquidity concerns at the forefront, some governments avoided domestic currency issues in favor of international offerings. Appetite for the debt was strong, with Abu Dhabi, Qatar, and Oman, comfortably selling $16.5 billion worth of international bonds,” NBK said in its report.

It added that Saudi Arabia was looking to capitalise on this growth was seeking to offer international investors $10 billion or more in foreign currency bonds.