Nigeria’s Borrowing Cost Eased as African Eurobonds Rally
The Nigerian sovereign Eurobond market rallied as foreign investors continued to ramp up the sovereign borrowing note from the international market.
The yield fell by four basis points to 8.13%, according to investment firm Cowry Asset Limited, reflecting reduced borrowing costs for the country. The market anticipates Nigeria’s external borrowing costs to ease as reforms spur macroeconomic indicator improvements.
The US dollar-denominated notes experienced broad-based demand, particularly for the JAN-2049 and NOV-2027. Buying interest was observed across the short, mid, and long ends of the curve, reflecting offshore investors’ positive sentiment about Nigeria’s economic outlook and fiscal performance.
Despite a decline in global oil prices, African Eurobonds sustain their rally as market participants focus on President Donald Trump’s meeting with President Vladimir Putin on Friday.
MarketForces Africa reported that the Eurobond market was largely bullish, with average yield falling 18 bps to 8.16% from 8.34% the previous week.
The strongest buying interest was in Feb 2030 (-28 bps to 7.66%), Nov 2027 (-27 bps to 6.59%), and Feb 2032 (-25 bps to 8.25%) maturities.
Global oil prices rose after China cut down crude imports from Saudi Arabia amidst price increases to Asian countries. Brent crude spiked 13 cents to $66.72 per barrel, while U.S. West Texas Intermediate appreciated by 16 cents to $64.04.
However, gold fell as investors awaited White House clarification regarding potential U.S. tariffs on imported gold bars as well as a U.S. inflation report that could provide an indication of the Federal Reserve’s rate outlook.
Spot gold dipped by 1.27% to $3,355.86 per ounce, while U.S. gold futures closed $87.28 lower at $3,404.02. Commodity prices are expected to trade cautiously tomorrow as China sources another trading partner. #Nigeria’s Borrowing Cost Eased as African Eurobonds Rally#
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