Senegal's Presidential Election Boosts Bond Markets

Senegal's sovereign dollar bonds experienced substantial gains, outperforming emerging markets, as investors expressed confidence in a stable government amid Bassirou Diomaye Faye's presidency. Market apprehension initially weakened after the opposition's early lead, but improved as Amadou Ba conceded the election to Faye. This resulted in a 22 basis points drop to 9.60% in the yield of the 2048 debt and a price increase to 73.99 cents on the dollar. Similarly, the rate on the 2033 note fell by 23 basis points to 8.94%. The positive market response reflects growing optimism towards Senegal's future under Faye's leadership.