Egyptian bond yields among the most attractive in emerging markets

Yields on Egyptian debt are among the most attractive in emerging markets once you adjust for inflation, Bloomberg says. “Emerging-market government debt lost 0.3 percent February after gaining 7.6 percent in the previous three months, according to the Bloomberg Barclays index, as mounting evidence of a global slowdown outweighs the benefits of a dovish Federal Reserve. Investors looking for sovereign bonds that buck the trend may want to watch real returns.” Brazil, Indonesia, South Africa, Egypt, and Mexico all offer real yields above 4%, and 18 of 23 EMs “offer higher compensation for inflation risks than U.S. bonds.”