What to make of Saudi Arabia’s return to the bond market?

Media reports suggesting that the Saudi central bank will issue bonds in greater volumes over the rest of this year have raised fresh concerns about the government’s seemingly relaxed response to the fall in oil prices. But as we explain in this Watch, bond issuance could be positive for the economy, at least in the near term. What’s more, the government will come under little pressure to tighten fiscal policy for a number of years.