Nigeria Sovereign Eurobonds Yield Drops to 9.7%
The average yield on Nigerian sovereign eurobonds declined by 9 basis points in the international debt market, driven by bullish momentum fueled by robust investor demand across short-, mid-, and long-term maturities.
Fixed income market analysts and traders saw selective demand, especially for the JAN-31 and MAR-29 bonds. As a result, the average Eurobond yield fell by 9 basis points, ending at 9.69%. Trading was mixed today, initially supported by improved US-EU trade prospects as President Donald Trump delayed 50% EU tariffs.
The momentum was also supported by May rebound in US consumer confidence. However, gains were pared by concerns over OPEC+’s aggressive production hikes, which may lead to oversupply through 2026.
Despite the volatility, Nigeria’s Eurobonds strengthened, with average yields tightening. In a report, CardinalStone Partners Limited highlighted the volatility in the global fixed-income market, largely influenced by the U.S. tariff actions.
U.S. Treasury yields fell alongside risk assets in response to the announcement of reciprocal tariffs. However, market sentiments improved following the U.S. decision to implement a 90-day tariff pause for most countries, excluding China, which led to renewed interest in U.S. Treasuries.
During the same period, the U.S. economy posted a 0.3% contraction in the first quarter of 2025, driven by a sharp increase in imports and reduced government spending.
Bullish momentum continued across African local credit markets in April, with the AFMI Bloomberg African Bond Index (25.0% capped) rising 1.2% month-on-month.
Most markets saw gains, except Botswana, which lagged due to growing investor risk aversion. Investors’ aversion to the market was driven by concerns over the country’s weakening fiscal position, declining reserves, and Moody’s downgrade of its credit outlook from stable to negative.
The ongoing volatility in the diamond market — a major revenue source for Botswana — further deepened concerns over fiscal risks. Ghana led the gains, driven by renewed investor confidence following a staff-level agreement with the IMF, which could unlock a $370.0 million disbursement.
The government also announced a measured return to the domestic bond market, building on momentum from its recent debt restructuring.
Zambia ended the month in positive territory, supported by Moody’s revision of its outlook to positive from stable, reflecting improved fiscal discipline and progress in debt restructuring.
In May, the local African credit market is expected to remain positive, driven by ongoing IMF engagements and the implementation of reforms in key markets such as Ghana and Zambia. Additionally, easing inflationary pressures and policy stabilisation are likely to support market sentiment. #Nigeria Sovereign Eurobonds Yield Drops to 9.7%#
