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Bank of America stays long Tunisian government bonds on IMF optimism

LONDON: Bank of America’s favorite government bond trade in the Middle East and North Africa is to buy Tunisian external sovereign debt on the expectation that prices could rise if the nation agrees a program with the International Monetary Fund. Should a deal with the IMF be struck, the yield spread on Tunisia’s 25-year dollar bond could tighten toward where Egypt’s equivalent-maturity debt is currently trading, Ali Dhaloomal, a credit research analyst at Bank of America, wrote in a res...
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