Nigeria’s Eurobonds Yield Falls to 8.30%, US Treasury Steady
The Nigerian Eurobond market closed mixed, as uneven investor demand across the curve led to a 1 bp drop in the average yield to 8.30% amidst a pause in US Treasury movement ahead of the US Federal Reserve funds rates decision.
Traders said in a separate investor’ note that the Africa Eurobond market traded mixed as investors stayed cautious ahead of the Federal Open Market Committee decision.
Analysts spotted mild buy-side on the mid- and long-tenor instruments, as average yields slipped but there is hope Fed meeting outcome will drive market sentiment in the next session.
U.S. Treasury yields trade little changed ahead of the Federal Reserve’s rate decision later Wednesday.
The yield on the 10-year US Treasury note held around 4.33% on Wednesday following a sharp drop in the previous session, as investors adopted a cautious stance ahead of the Federal Reserve’s policy announcement.
The two-year Treasury yield is flat at 3.871%, while the 10-year Treasury yield is up 0.8 basis points at 4.335%, according to Tradeweb. The Fed is expected to keep the fed funds target range unchanged at 4.25%-4.50%, although Chair Powell might open the door to rate cuts later in the year.
Interest rates are widely expected to be left on hold, but the Fed has come under political pressure to ease policy, and some dissenters could favour cutting rates. Global oil prices gained over 3% on Tuesday as President Trump ramped up pressure on Russia over its war in Ukraine and on optimism that a trade war between the U.S. and its major trading partners was abating.
Brent crude gained $2.62 to $72.66 per barrel, while U.S. West Texas Intermediate appreciated $2.57 to $69.28. Similarly, gold prices edged higher as investors awaited the outcome of U.S.-China trade talks and the Fed’s policy meeting.
Spot gold increased by 0.34% to $3,326.0 per ounce, while U.S. gold futures closed 0.43% higher at $3,681. 7. Commodities prices to trade in the direction of the Fed’s rate #Nigeria’s Eurobonds Yield Falls to 8.30%, US Treasury Steady Foreign Investors Increase Bets on Nigeria’s Eurobonds, Rates Ease
