Mozambique's Financial Turmoil: Election Backlash Hits Dollar Bonds

Mozambique's sole eurobond, maturing in 2031, has fallen amidst fears of public unrest linked to alleged electoral fraud. The situation worsened following violence involving opposition figures. Rising U.S. Treasury yields have also pressured Sub-Saharan African bonds, elevating financial concerns as Mozambique's debt nears its GDP.

Mozambique's eurobond, due in 2031, continued its decline on Wednesday, as ongoing public unrest over disputed election results heightened economic concerns.

Tensions rose after violence in the capital, with officials killed and police clashing with protesters, further affecting investor sentiment.

The country's financial struggles deepen as its debt nears annual GDP, exacerbated by elevated borrowing costs and LNG production challenges, with S&P lowering its credit rating.

(With inputs from agencies.)