Bonds
Zambia Bonds Rally as Morgan Stanley Praises Budget Restraint
- Nation targets 3.1% fiscal deficit in 2025; 6.4% this year
- Some Zambians hoped for tax breaks to deal with power crisis
Zambia bonds have performed so well that Secretary to the Treasury Felix Nkulukusa on Monday said the window may be closing to exchange them in a potential debt-for-nature swap.
Photographer: Luke Dray/BloombergThis article is for subscribers only.
Zambia’s dollar bonds climbed after its 2025 spending plan won praise from Morgan Stanley even as it drew concern from locals battling with the impact of the nation’s worst drought in a century.
The advance on its $1.7 billion in notes due 2033 sent yields tumbling by the most on record, reaching 7.86%. They’ve dropped more than 30 basis points since Finance Minister Situmbeko Musokotwane announced the budget on Sept. 27, reversing a weakening trend that started after the government completed a debt restructuring in June.