Frontier Daily, 23 February: Mozambique, Kenya loses; Venezuela gains

• Mozambique’s 2031s fell 1.7% on Friday after the IMF struck a pessimistic tone in a report released late Thursday.

• Underperformance continued in Middle East eurobonds on Friday amid heightened US military buildup in the region

• Hungary threatened to block the EU’s 20th Russia sanctions package unless oil deliveries resume

  
  

EM eurobonds were broadly flat on Friday, with median spreads across our sample widening by 1bp, while the US 10-year yield held steady at 4.09%. The S&P 500 rose 0.7% after the Supreme Court rejected Trump’s emergency tariffs, a decision that had been largely priced in, limiting market reaction. However, uncertainty remains over the next steps. Trump subsequently announced 10% global tariffs for up to 120 days on Friday, increasing the rate to 15% on Saturday.

Europe, Middle East

• Underperformance continued in Middle East eurobonds on Friday amid the US military build up in the region and growing fears of a confrontation with Iran. Egypt's 2033s declined 0.2%, while Bahrain's 2036s were down 0.2%. Saudi Arabia's 5% 2035s and Jordan's 2030s also declined 0.1% in price terms. Trump said on Friday he would not rule out a limited Iran strike and that the country had 10 to 15 days at most to strike a nuclear deal (in June Trump's two-week public deadline lasted online 48 hours before strikes were launched on nuclear facilities).

• Montenegro’s annual inflation eased to 2.9% yoy in January 2026, from 4% in December. This marked the lowest reading since March 2025.