The withdrawal of stimuli announced by the main central banks is easing interest rates on the sovereign debt of developing countries. The most significant decreases are in
It is a scenario that contrasts with that experienced in developed countries. In
The same happened in
Meanwhile, interest rates in several developing countries are falling, which may represent a decrease in the burden of issuing new debt. According to data compiled by Bloomberg, emerging market sovereign bonds have fallen a total of 1.3% this year.
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South African bonds have led the way in steady returns for investors. Bloomberg data indicates that the bonds have given a total return of 8.7% this year, despite the country being the first to detect the omicron variant. The coupon gain was 9.02% and offset the 0.79% loss caused by the fall in bond prices.