Mozambique's dollar bond fell for a third day on Wednesday, Tradeweb data showed, as the risk of public unrest lingered over disputed election results.
The country's sole eurobond, which matures in 2031, shed 0.54 cents to bid at 84.92 on the dollar, taking its losses since Friday to more than two cents.
The full results of Mozambique's October 9 national election are expected this week, but opposition candidates say the poll was rigged.
On Saturday gunmen killed an opposition lawyer and a party official in the capital Maputo, and police this week fired teargas and bullets at protesters who had gathered where the two were killed.
Financial pressure
"No doubt the 31s have suffered due to the election-related violence over the weekend," Kevin Daly, portfolio manager at asset manager abrdn, said via email referring to the 2031 eurobond.
Daly added that there has been a broader selloff of other Sub-Saharan African bonds this week due to rising US Treasury yields.
Tellimer economist Jamie Fallon said the funeral of the slain opposition figures on Wednesday could become a focal point for more protests.
Mozambique is under financial pressure as its borrowing costs are high and insecurity has hampered liquefied natural gas production, a key revenue earner for the government.
Distressed debt exchange
The country's debt is nearly as big as its annual GDP.
Last week S&P Global Ratings lowered Mozambique's long-term local currency sovereign credit rating to "CCC" from "CCC+", while affirming a stable outlook.
S&P cited an "elevated likelihood" that Mozambique will miss payments on domestic local currency debt or implement a distressed debt exchange.
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