Bond Comparison Tool — Compare Instruments

Angola’s sovereign yield curve spans six distinct instrument classes, ranging from 91-day zero-coupon Bilhetes do Tesouro (BTs) yielding approximately 15.8% to 10-year fixed-rate Obrigacoes do Tesouro de Taxa Fixa (OTNRs) near 19.8% – a term premium of roughly 400 basis points that compensates for duration risk in an economy where inflation stands at 15.7% YoY and the BNA policy rate has been cut three times since July 2024 to 17.5%. Understanding the trade-offs between these instruments is critical for constructing an optimal Angolan fixed-income allocation.

Full Instrument Comparison

The following table provides a comprehensive side-by-side comparison of all major Angolan government debt instruments available to investors as of February 2026:

Real yield calculated as nominal yield minus December 2025 inflation of 15.7% (INE). OTX and Eurobond real yields are measured against USD/EUR inflation respectively.

Instrument Class Breakdown

Bilhetes do Tesouro (Treasury Bills)

BTs are zero-coupon, short-dated instruments issued at a discount to face value. They are the most liquid instruments in the Angolan domestic market and serve as the primary tool for monetary policy transmission. With yields of 15.8-16.5% across the 91-to-364-day range, BTs currently trade below the BNA policy rate of 17.5%, reflecting market expectations of further rate cuts. Key characteristics:

• No reinvestment risk: As zero-coupon instruments, BTs eliminate coupon reinvestment uncertainty.
• Highest liquidity: Average daily secondary-market turnover of Kz 25-40 billion (BODIVA data).
• Lowest credit duration: Maximum exposure of 12 months limits mark-to-market volatility.
• Tax-efficient: Coupon-equivalent income is exempt from personal income tax for resident individuals.

For detailed analysis of each tenor, see the 91-day BT, 182-day BT, and 364-day BT pages. Historical auction data is available on the BT auction results page.

OTNRs (Fixed-Rate Treasury Bonds)

OTNRs are the backbone of Angola’s domestic bond curve, spanning 2 to 10 years. They pay fixed semi-annual coupons set at auction and are denominated in kwanza. The OTNR curve currently ranges from 16.85% (2-year) to 19.75% (10-year), a spread of 290 basis points that has widened from approximately 220 bps in mid-2025 as the short end has rallied faster than the long end during the BNA easing cycle.

• Duration exposure: Modified duration ranges from approximately 1.8 years (2Y OTNR) to 6.2 years (10Y OTNR), making longer-dated OTNRs significantly more sensitive to yield changes.
• Capital gain potential: In a rate-cutting environment, OTNRs offer price appreciation. A 100 bps parallel yield decline would generate approximately 1.8% price gain on a 2Y OTNR and 6.2% on a 10Y OTNR.
• Inflation risk: With inflation at 15.7% and the real yield on the 2Y OTNR at only 1.2%, a reversal in the disinflation trend would erode real returns quickly.

Detailed tenor analysis: 2-Year | 3-Year | 5-Year | 7-Year | 10-Year. Auction results are tracked on the OT auction results page.

OTX (Foreign-Currency-Indexed Bonds)

OTX instruments are denominated in kwanza but indexed to a foreign currency (USD or EUR) via the BNA reference rate. This structure provides investors with an implicit FX hedge: if the kwanza depreciates against the reference currency, the principal and coupon payments adjust upward in kwanza terms. At yields of approximately 7.25% (USD) and 6.80% (EUR), OTX instruments offer:

• FX protection: Particularly valuable for investors concerned about currency depreciation, with the USD/AOA currently at approximately 914.60.
• Lower nominal yield: The FX hedge comes at the cost of significantly lower nominal coupon versus OTNRs. The “give-up” is approximately 1,100 bps at the 3-year point (17.55% OTNR vs 7.25% OTX).
• Breakeven depreciation: The OTX becomes preferable to the OTNR if the kwanza depreciates by more than approximately 10.3% annually against the dollar over the bond’s life.
• Strong auction demand: Bid-to-cover ratios for OTX consistently exceed 2.0x, reflecting high demand for the FX hedge. See the OTX USD page and OTX EUR page.

Eurobonds (International Sovereign Bonds)

Angola’s Eurobonds trade on international markets in USD and are governed by English law. The benchmark 2029 issue yields approximately 9.60%, a spread of roughly 530 bps over US Treasuries. Eurobonds provide:

• Hard-currency returns: No local-currency depreciation risk.
• International liquidity: Traded on the OTC market with standard T+2 settlement, accessible through global custodians.
• Higher minimum tickets: Typically $200,000 face value, limiting retail access.
• Collective Action Clauses (CACs): Standard in recent issuances, allowing restructuring with 75% creditor consent.

Full Eurobond analysis is available on the Eurobonds page.

Strategic Comparison Matrix

For detailed strategy guides, see the bond strategies section, including buy-and-hold, income strategies, ladder construction, and FX play.

How to Choose

The optimal instrument depends on three key variables:

1. FX view: If you expect kwanza depreciation exceeding ~10% annually, OTX instruments outperform OTNRs despite their lower nominal yield. The BNA policy page provides context for FX outlook.
2. Rate view: If you expect further BNA rate cuts (the current market implies approximately 200 bps of additional easing through 2027), longer-duration OTNRs offer the greatest capital appreciation potential. See real yields for current positioning.
3. Liquidity needs: BTs offer same-day settlement and deep secondary markets; 10-year OTNRs may take days to execute at fair value.

Use the bond calculator to model specific scenarios with your assumptions, or compare Angola’s instruments against African peers for relative-value context. For guidance on accessing these instruments, consult the how to invest guide or the Portal do Investidor guide.