- Mozambique and Senegal eurobonds are posting the best returns across emerging markets, driven by advances in negotiations with the IMF on new financing programs.
- The two African sovereigns are bucking a wider emerging-market bond selloff, which has been triggered by a sharp rise in developed-market yields from the US to Japan.
- Investors are fretting over ballooning fiscal deficits and higher inflation across developed markets, the backdrop weighing on EM debt broadly.
Quotes
“Mozambique and Senegal’s eurobonds are topping returns across emerging markets, spurred by progress in talks with the International Monetary Fund over new programs.”
“The gains buck a wider dip in EMs, driven by a sharp rise in developed-market yields from the US to Japan, as investors fret over ballooning fiscal deficits and higher inflation.”