Nigeria Sovereign Eurobonds Yield Falls to 9.3% -MarketNews
Nigeria’s sovereign Eurobond yield declined to 9.34% as foreign investors boosted their portfolio across African papers. On the back of an elevated yield, offshore investors’ appetite for African bonds has increased as US Fed fund rates steadied.
Following damaging inflation and worsening exchange rates, African sovereign US dollar bonds has continued to attract offshore investors. Hence, trading appetite for the Nigeria Eurobond remained upbeat as market reacted to US Federal Reserve decision to keep fed funds rates.
Bargain hunting was spotted across the short, mid, and long ends of the yield curve, resulting in a 4-basis-point decline in the average yield, which settled at 9.34%. Traders said buying interest remained prevalent across the curve as portfolio investors leveraged on attractive yields in the market.
Notably, the Nov-25 (-7bps) and Mar-29 (-6bps) maturities recorded the most significant yield declines, reflecting a preference for shorter-dated maturities. On Thursday, market players remained largely unfazed following Federal Open Market Committee meeting yesterday.
In that meeting, the Federal Reserve opted to maintain the interest rate in the range of 4.25% to 4.50%, which was largely anticipated. Fed Chair Jerome Powell indicated that officials are not in a hurry to lower interest rates, citing a strong economy and the need for further progress on inflation.
In regional markets, Nigerian bonds showed a bullish trend, while Angola’s bonds remained flat from day to day. Conversely, Egypt experienced a bearish sentiment. #Nigeria Sovereign Eurobonds Yield Falls to 9.3% -MarketNews Investors Portfolio Value Increased by N347bn in Equities Market
