Foreign Investors Increase Bets on Nigeria Eurobonds
The average yield on Nigerian Eurobonds decreased slightly following a moderate buying interest by offshore investors in the market. The yield contracted as foreign portfolio investors increased their position amidst uncertainties in the Nigerian economy.
The market had gone bearish, spooked by an inflation surge and later trading activities tempered on the back of an adjustment to the benchmark interest rate by the monetary authority.
In Nigeria’s sovereign Eurobonds market, buy pressure across the short, mid, and long segments of the yield curve caused the average yield to decline by 0.01%, settling at 9.65%, Cowry Asset Limited said.
Traders explained that the Eurobonds market experienced a subdued session with extremely low trading volumes seen throughout the African curves owing to the US Thanksgiving holiday.
Trades were concentrated on the 2027s, 2032s, 2047s, and 2049s maturities, reflecting cautious optimism among investors, TrustBanc Financial Group said in its market update.
In the local bond market, the average benchmark yield remained stable at 19.02%, with traders approaching the session with measured optimism, evidenced by a modest bullish sentiment, fixed income market analysts wrote.
Trading activity was largely focused on the auction papers, with the 2029 and 2031 maturities closing 5bps and 2bps lower from their opening levels of 20.75% and 21.80%, respectively, as investors capitalized on their appealing yields.
US 10-year government bond yield decreased to a 4-week low of 4.23%. Over the past 4 weeks, US 10-year note bond yield lost 7.20 basis points, and in the last 12 months, it decreased 11.90 basis points. Litigation Claims against Access Holdings Plc Hit N11.3Trn
