Senegal Bonds Rally as Investors Warm Up to Faye’s Presidency
- Candidates back opposition’s Faye before results made official
- Market favorite Ba’s concession smooths Faye’s path to power
People line up to vote during the presidential election in Dakar, March 24.
Photographer: Annika Hammerschlag/BloombergThis article is for subscribers only.
Senegal’s sovereign dollar bonds rallied, posting some of the best gains in emerging markets, as investors bet on the western African country getting a stable government and Bassirou Diomaye Faye toning down some of the extreme policy measures he had outlined during the campaign.
Initial apprehension of an opposition win had sent markets weaker in early trade, which gradually reversed as the market favorite, Amadou Ba, conceded Sunday’s election to Faye. The yield on debt due 2048 fell 22 basis points to 9.60% by 3:21 p.m. in London, with its price rising to 73.99 cents on the dollar. The rate on the 2033 note declined 23 basis points to 8.94%.