Senegal - IMF Agreement: The Intriguing Reaction of Eurobonds After Government Announcement

Senegalese sovereign bonds experienced record sell-offs of $13.1 million in two weeks following the announcement of a technical agreement with the IMF on September 1. Despite the aim to reassure markets, the announcement triggered massive selling of bonds, particularly those maturing in 2028. The government also announced a request for restructuring its external debt, raising concerns about a potential default.