Senegal Eurobonds Plunge as Ousmane Sonko Threatens Budget Block

Senegal's Eurobonds declined sharply following threats from opposition leader Ousmane Sonko to block the revised budget for the current year and the 2027 spending plan. The political standoff triggered investor fears that the government's fiscal plans could be compromised, which may delay a new International Monetary Fund program and complicate ongoing debt restructuring efforts.

As a result, Senegal's dollar bonds became some of the worst performers in emerging markets. Notes due in 2031, 2033, and 2048 fell below 51 cents on the dollar. During trading in London, the yield on the 2031 securities rose more than 100 basis points to 27.39%.