Yield on Nigeria’s Eurobond Declines to 9.6%
Nigeria’s sovereign Eurobonds market experienced buy pressure across the short, mid and long ends as foreign portfolio investors sentiment improved. The renewed bargain hunting on Nigerian notes led to a six basis points, 6bps, decrease in the average yield to 9.62%, said Cowry Asset Limited.
The Eurobond market kicked off the year with bucket of demand for Nigeria’s Eurobond on expectations of an improved economic performance in 2025. According to AIICO Capital Limited, trade volumes were weak as participants were still adjusting to the New Year.
As the day went on, buying interest increased, particularly for sovereign bonds from Sub-Saharan Africa (SSA) and North African countries, especially Nigeria, Angola, and Egypt. The Nigeria’s positive macroeconomic indicators forecast across global ratings agencies lifted offshore investors’ sentiment.
The bargain hunting was also driven by easy access to upstream capital, though exchange rate directions remained concern. With expectation that the naira recovery will not negatively impacts portfolio performance, foreign portfolio investors were seen engaging in sizeable buying across the curve.
Notably, the Nov-25 and Feb-32 maturities led the rally, with yields declining by 10bps and 7bps, respectively, TrustBanc Financial Group Limited said in a note.
Similar bullish sentiment was observed in Ghana, Egypt, and Angola, while the Nigerian banks also recorded notable buying interest save for FBN Oct-25 bill, which experienced contrasting movement, the firm said. #Yield on Nigeria’s Eurobond Declines to 9.6%
