Do not panic, but it seems the flood of liquidity and central bank largesse can only do so much. The much-discussed issuance of 10 year Rwanda debt at a 7% yield earlier in the month made more than a few of even the most die-hard momo junkies look up from their 'Buy' keyboards for a brief second. In the past few days, something rather disturbing has occurred in this ultimate arbiter of risk-on demand... Rwanda bonds are selling off... now up 15bps in yield since issuance. Have no fear though as we are sure Abe, Bernanke, or Draghi will be along shortly with a plan to help SME lending in Rwanda... or will promise to do 'whatever it takes' to ensure Rwanda yields are not manipulated by speculators...
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Of course, all this 'concern' is unwarranted as in the three weeks since Rwanda issued its 10Y bond, US treasury yields have risen 30bps so 'theoretically' Rwanda's risk has dropped around 16bps - all hail the central banker...