In this article, we will be looking at the 5 countries that offer the highest bond yields in the world.
Achieving double-digit returns often requires venturing into markets facing economic headwinds like inflation and geopolitical instability.
The current environment of persistent inflation and escalating trade tensions pushes investors to emerging markets with yields over 15%, reflecting both risk compensation and economic difficulties. Diversification justifies considering bonds over volatile equities, despite risks like currency depreciation eroding high nominal returns.
Elevated yields are driven by factors like inflation (forcing rate hikes) and recovery from defaults (leading to higher borrowing costs). Even seemingly stable economies can have underlying vulnerabilities. The article will analyze 5 high-yield countries to help investors make informed decisions. For a more comprehensive version of this report, please visit 12 Countries with the Highest Bond Yields in the World.
Our Methodology
This article will look at 5 countries that offer the highest bond yields in the world as of 5th Apr 2025. The 10-year bond yield is considered for the analysis, and the countries are listed from the lowest to the highest in terms of the yield. The data for the article is gathered from the website Worldgovernmentbonds.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
5. Uganda
S&P Rating: B-
10-Year bond yield as of 5th Apr 2025: 17.79%
Uganda’s 18% bond yield is an attractive option for investors considering taking moderate to significant risks. The S&P rating of ‘B-‘ with a stable outlook can provide some concerns for investors. The high bond yields are due to Uganda’s total public debt, which increased by 17.8% at the beginning of 2025. Despite that, the inflation of Uganda is stable at 3.4%, and its currency, the Ugandan shilling, demonstrated stability against the USD.
4. Nigeria
S&P Rating: B-
10-Year bond yield as of 5th Apr 2025: 19.53%
Nigeria’s decision to remove fuel subsidies in 2023 has caused a rift in its standard of living. Nigeria’s inflation for Feb 2025 stood at 23.18%. The ‘B-‘ outlook provided by S&P with a positive outlook further indicates that this specific bond is a highly speculative investment. However, inflation has been on a declining pattern, and the increasing foreign reserves, which rose 15% in 2024, can provide a sign of relief for the future of Nigeria.
3. Egypt
S&P Rating: B-
10-Year bond yield as of 5th Apr 2025: 20.21%
Egypt ranks among the countries with the highest bond yields due to its 20.21% bond yield and exorbitant 24% inflation rate, which erodes actual returns, leading to investors seeking higher returns for their investments. The S&P rating of B- is one of the lowest on our list, indicating a high risk that investors might face when investing in Egypt’s government bonds. The high public debt levels and fiscal deficits also contribute to the inverted yield curve, indicating a high chance of recession.
2. Zambia
S&P Rating: SD
10-Year bond yield as of 5th Apr 2025: 20.62%
Zambia, like Ukraine and Sri Lanka, received an SD rating from the S&P after it failed to meet the foreign currency debt obligation of $42.5 million Eurobond payment in 2020. S&P maintained the SD score after the country could not meet its commercial debt payments in May 2024 and has continued. Zambia’s 20.62% yield is ranked highest among the countries in Africa, and the SD rating provided by the S&P does not help it in any way. With one of the highest inflation rates (15%) in Africa, coupled with the negative GDP growth (-1.2% YOY) in 2024, Zambia has been in the midst of a financial and economic crisis due to severe drought affecting two of its biggest industries (Hydropower and copper production).
Hedge Fund Resource Center