Gulf Islamic bond yields fell for a third month as a scarcity of sukuk and Europe’s debt crisis prompted local investors to favour the oil-rich region. Average yields on sukuk from the six-nation Gulf Cooperation Council slid 20 basis points, or 0.2 percentage points, last month to 3.18 per cent August 31, according to the HSBC/Nasdaq Dubai GCC US Dollar Sukuk Index.
That compares with a nine basis-point drop to 4.74 per cent for emerging market bonds, according the JPMorgan Chase & Co’s EMBI Global Diversified Blended Yield index. Ten-year US Treasuries yielded 1.55 per cent on August 31………………………………………..Full Article: Source