MUFG note and Reuters poll lift Fed-hike odds; raises pressure on long-dated African USD eurobonds

On Sep 11, 2026 MUFG revised its Fed path and said it now expects a 25bp hike in September; a Reuters poll (published Sep 9, 2026) also showed rising odds of further Fed hikes. Together these repricings lift expected US discount rates and pressure long-dated African USD eurobonds and dollar-funded corporates.

Higher near-term US policy expectations raise nominal US Treasury yields and discount rates, which mechanically lower present values of long-dated USD cashflows. For African issuers that fund in dollars, this increases rollover and funding costs, can widen sovereign and corporate USD spreads and may squeeze primary issuance for long-dated maturities if risk premia rise.

FOMC September decision and US CPI prints; upcoming long-dated African sovereign/corporate USD bond primary calendar.