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Zambia's Bonds Yield More Than Defaulter Mozambique's

Zambia's Eurobond yield is higher than that of its defaulting neighbor

In a sign of how skittish investors are about Zambia, its Eurobonds now yield more than those of neighbor Mozambique, which has been in default for 18 months and has made little progress on a restructuring. The gap was as wide as 11 percentage points at the start of the year, but has closed as Zambia’s talks with the International Monetary Fund for a bailout stall and the emerging-market selloff buffets the southern African country. Spreads on its 2024 dollar notes have risen to almost 1,350 basis points over U.S. Treasuries.