Saudi Arabia has been bleeding reserves like mad for the past two years thanks to low oil prices. Now, it’s looking to top off the tank by selling bonds – boatloads of them! Officials from the desert nation are currently meeting with potential bond buyers on both sides of the Atlantic ahead of a planned debt sale, according to the Wall Street Journal. It could raise more than $10 billion, making it one of the biggest debt sales ever.Â
Of course, you’re still talking about a country with a record $98 billion budget deficit last year. And you have to wonder how much demand there will be for all this sovereign paper, especially when you consider its Gulf neighbors have been selling billions of dollars of their own bonds to plug gaping budget holes. Could these sales be one reason long-term government bonds have been selling off since July? Hmmm…
