GCC markets might not have read the memo about the US Fed's dovish hike. The 1 year and 2 year swaps moved higher yesterday towards 1.86 and 2.14% respectively.

Liquidity is poor towards year end, but the direction seems clear. A solid USD typically indicates low oil prices and indeed this is exactly manifested yesterday.

"Clearly markets remain anxious about the impact of low oil prices and the strong USD upon the USD-SAR peg... Investors can expect swap rates to continue grinding higher and forward markets to edge higher also", says Commerzbank. Add to Anti-Banner