DUBAI, May 11 (Reuters) - Saudi bonds rallied more than most other Gulf sovereigns on Monday on the back of austerity measures announced by the finance minister earlier in the day including a tripling of the country’s value-added tax rate.
Saudi Arabia’s 35- and 40-year bonds maturing in 2055 and 2060 gained 1.1 cents to trade at 92.4 cents and 101.4 cents on the dollar respectively, Refinitiv data showed.
“Saudi Arabia is outperforming. The market is seeing the actions as being supportive of fiscal discipline, even though the impact appears minimal,” a fund manager said. (Reporting by Yousef Saba; Editing by Hugh Lawson)