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Oddity in Bahrain Bonds a Sign Faith in Gulf Aid Not Enough

  • Yield on Bahrain’s 2022 bond is higher than on its 2024 sukuk
  • Investors demand explicity financial support from Gulf allies
Bahrain's Financial District
Photographer: Phil Weymouth/Bloomberg
Updated on

There’s an anomaly forming in Bahrain’s debt market.

The yield on the island kingdom’s dollar bonds maturing July 2022 is about 150 basis points higher than Islamic securities due two years later, according to data compiled by Bloomberg. That’s unusual because longer-dated notes typically have higher yields.