Deals
Love of Yield Beats Supply Fears as Africa Plans Bond Deluge
- Ghana to Benin line up Eurobond sales amid strong 2019 start
- Yields could narrow further on momentum, Pinebridge says
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The dollar-bond market remains unruffled by what could become a torrent of new-bond sales from African governments: the yields are far too attractive to worry about excess supply for now.
A measure of African sovereign dollar-bond yields eyed the biggest two-day drop in a month even as governments from South Africa to Ghana were testing the water for potential bond sales. Still, the gauge hovered above its 10-year average, acting as a lure for yield-chasing investors, given the little room for monetary tightening in the U.S., Europe or Japan.