African bonds take beating as USTs punish high beta

By Francesca Young
16 Oct 2014

The sharp selloff in emerging market bonds caused by the severe volatility in US Treasuries on Wednesday hit Africa bond markets the hardest. A perfect storm engulfed the continent’s bond trading — EM investors alarmed by the Treasuries move, falling oil prices and fears over Ebola smashed any remaining resolve among investors in African bonds.

“Africa bonds were off 50bp on Wednesday and they’re off another 20bp this morning,” said one emerging markets syndicate official in London on Thursday. “The storm needs to blow itself out.”

Selling across CEEMEA has varied — Turkey and South Africa widened only 15bp on Wednesday and ...

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