Selling pressure spread across the Gulf last week amid investor worries that Qatar's political split with its neighbours is unlikely to be resolved soon. A bond trader reported "heavy selling across the GCC" on Thursday, as the diplomatic crisis showed no signs of easing. Up to that point, the selling had been largely confined to Qatar. But as relations between neighbours deteriorated, investors began to offload other bonds. Qatar's June 2026s were down about 2.5 points on the bid side over the course of the week, or around 30bp wider in Z-spread terms. Its June 2046s were down four points, or 21bp wider on a Z-spread basis.
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