Higher Treasury Yields Could Tighten Gulf Funding Conditions
Dow Jones
Sep 16
1311 GMT - Higher U.S. Treasury yields could tighten Gulf financial conditions even though many regional companies are relatively insulated from the direct impact, Emirates NBD says. Gulf corporates predominantly borrow at floating rates, making Treasury-yield moves less directly important for them, but higher yields raise funding costs for governments and government-related entities. They can also tighten regional liquidity by weakening global risk appetite, the bank says, after changing its Federal Reserve call to expect a September rate increase. The Fed announces a decision at 1800 GMT.
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