Risk-off Sentiment: Nigeria US Dollar Bond Yield Climbs 6bps
Nigerian US dollar bond yields climbed by six basis points (6bps) to 7.48% as the Eurobond market remained bearish, though some recently repriced papers saw selective demand.
The average yield on Nigeria’s sovereign US dollar bond inched up six basis points (6bps) on limited investor interest despite growing fiscal strength supported by elevated global oil prices.
Foreign portfolio investors reduced holdings in some African Eurobond issuers, and sentiment toward Nigeria’s sovereign dollar bonds remained cautious.
Traders noted that selling exceeded demand on Tuesday, despite falling US Treasury yields. Investors remained cautious about inflation and the Fed’s next steps as oil prices surpassed $110, increasing global energy costs and inflationary pressures.
The US 10-year yield eased to approximately 5.08% following weak housing data (housing starts -5.2%, pending home sales -7.3%), though concerns about tighter Fed policy persisted.
Brent crude remained between US$108 and US$111, sustaining inflation concerns. Yields on Nigerian Eurobonds increased at the short end and on the 20-year.
Market reports obtained revealed the 3-year Nigeria US dollar bonds yield rose 5bps to 6.56%, the 5-year rose 3bps to 7.15%, and the 20-year rose 1bp to 8.58%.
AIICO Capital Limited told investors that buyers were active in the middle of the curve, so the 7- year fell 5bps to 7.63% and the 10-year fell 4bps to 7.95%.
The investment firm expects yields to stay near current levels, with cautious trading. Oil prices, news from the Middle East and the Fed meeting on 27-28 October could move prices quickly in either direction
Since the start of 2026, global government bond yields have risen steadily. In September alone, yields on the U.S. 10-year Treasury rose a full 50 basis points (bps), closing the month at 5.25%, a level not seen since 2002.
Sharp yield spikes haven’t been confined to the U.S. market. Recently, yields on the U.K.’s 30-year gilt climbed above 6% for the first time since 1998, said J.P. Morgan in a note.
In France, the 10-year yield is at its highest level since mid-2002. In Japan, yields on the 10-year Japanese Government Bond rose above 3% for the first time since 1996.
“We’ve begun to run out of superlatives as global bond yields continue to move higher,” said Jay Barry, head of Global Rates Strategy at J.P. Morgan.
“Treasury yields [are] retracing to multi-decade highs, and underperforming other developed market [DM] government bond markets in the process.” DMO to Open N1.75trn Nigerian Govt. Bonds for Subscription
