Prolonged Middle East conflict could hit broader markets, say bond investors

libya-protest
Middle East unrest: uncertainty for bond markets

As protestors take to the streets throughout the Middle East and North Africa, market participants are watching with caution. While the impact to date on the bond market has been relatively minor, further contagion into countries such as Bahrain and Saudi Arabia could have far more severe consequences.

This effect has already been recognised in the progression of political upheaval through Tunisia, Egypt, and now Libya. As a result, reports of protests among the Shi’ite communities in Bahrain an