Nigeria’s Eurobond Yield Dips to 7% as African Issuers Rally
Nigeria’s Eurobond yield declined to 7% due to bargain hunting experienced in the African Eurobonds market. Interest in some African issuers, especially oil producing nation, amidst fluctuating oil prices.
The market price-in mixed macroeconomic data across the African region, with a growing number of successful economic reforms in key regions, oil price volatility, and potential U.S. attacks on Iran.
Nigeria, Angola, Egypt, and Ghana ranked among the top investment destinations amidst sharp Treasury yield fluctuation in the U.S debt capital market.
The market kick-starts the week on a positive note as improved oil prices reinvigorated investors’ sentiment, causing the average benchmark yield to drop by 3bps to 7.09%.
By midweek, profit-taking on selected maturities led to a yield uptick as the investors reacted to the U.S. January unemployment rate, which came lower at 4.3%, compared to the December rate of 4.4%, signaling a cautious Federal Reserve Policy stance.
Towards the end of the week, average yield dropped to 7.04% as investors reacted to the mixed U.S. jobless claim data. By the end of the week, the market stayed bullish as investors reacted to the U.S. CPI January CPI data of 2.4%, lower than the estimate of 2.5% and 2.7% in December 2025.
In Nigeria sovereign segment, bullish momentum was buoyed by expectations of a potential rate cut by the Fed as inflation continues to moderate.
Average benchmark yield declined modestly by -6bps to close at 6.95%. Renewed demand was visible for the 24-Mar-29 (-10bps), 16-Feb-32 (-8bps), and 28-Nov-47 (-8bps) maturities.
“We expect bullish sentiments in the Nigerian Eurobond market to persist in the near term supported by robust investor demand for Nigerian sovereigns as well as expectations of easing global yields especially in the advanced economies”, said, Anchoria Securities Limited. Central Bank to Open N1.15trn Treasury Bill for Subscription
