Risk-On Appetite Boosts African Bonds After Middle East Truce

African bonds are rallying as investors return to high-yield assets amid bets that the truce between Israel and Iran will hold, with lower oil prices cutting inflation expectations and boosting real rates on the continent.

A gauge measuring the performance of African sovereign and quasi-sovereign dollar bonds jumped 1% on Wednesday, the most in nearly two months. This compares with a 0.6% gain for a broader sovereign bond index covering emerging markets.