African bonds take beating as USTs punish high beta credit

The sharp sell off in emerging market bonds, caused by the severe volatility in US Treasuries on Wednesday, has hit Africa bond markets the hardest. A “perfect storm” has engulfed the continent’s bonds — EM investors alarmed by the Treasuries move, falling oil prices and continued fears around the spread of Ebola combined to smash any remaining resolve left in investors trading in African bonds.