Ethiopia Eurobond Yields Plunge on Tigray Peace Deal Progress

Ethiopian eurobonds rallied after dissident Tigrayan fighters this week agreed to hand over heavy weapons, firming up a peace deal that may bring an end to the country’s civil war, and after China agreed to cancel some of its bilateral debt.

“Ethiopia probably compressed on peace progress more than China headlines,” said Maciej Woznica, fixed-income portfolio manager at Coeli Frontier Markets AB. French and German foreign ministers also met with Ethiopian officials in the capital, Addis Ababa, in support of the peace agreement.