Investing.com -- Egyptian sovereign dollar bonds experienced a significant rally on Tuesday, marking some of the largest gains in emerging markets, Bloomberg reported.
The optimism is fueled by the prospects of Donald Trump's potential return as US president and the recent ceasefire between Israel and Hamas.
The country's security due in February 2048 rose for the sixth consecutive day, reaching its highest point since December 12. Additionally, nine other Egyptian bonds were among the top 20 performers in the Bloomberg EM Sovereign Total (EPA:TTEF) Return Index for the day.
Egypt's growing role as a key geopolitical player in the Middle East has been highlighted by President Abdel Fattah El-Sisi's mediation efforts in the Gaza conflict and the country's role in mitigating the migrant flow to the European Union.
Since March of the previous year, Egypt's bonds have gained favor among global money managers. This follows the country's acquisition of multi-billion-dollar flows from bilateral partners and the International Monetary Fund.
Egypt has also increased interest rates and allowed its currency to weaken, further attracting international investors to its bond market.
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