Foreign Investors Raise Bet on Nigeria’s Eurobond as Economy Grows
The benchmark yield on Nigeria’s sovereign Eurobonds shrank in the international market as investors’ demand increased amidst solid economic growth in the third quarter of 2024. Foreign portfolio investors increased their bets on Nigeria’s US dollar bonds due to elevated yields and the expectation that US Fed rates cut expectations.
The country’s US dollar bonds had faced selloffs as the inflation rate accelerated in October as investors moved to rebalance their portfolios. Hot money is expected to flow into the African Eurobond market as some offshore debt market players seek safe haven.
In Nigeria’s sovereign Eurobonds market on Monday, buying pressure across the short, mid, and long segments of the yield curve led to a 0.08% decrease in the average yield, bringing it to 9.62%, Cowry Asset Limited told investors in a note.
The bulls regained control, opening the week on a positive note with modest buying momentum across the curve. Fixed income market analysts said a similar bullish sentiment was observed across the curve in Egypt, Ghana, and Angola papers.
The National Bureau of Statistics (NBS) said in its quarterly report that Nigeria’s economy maintained its positive growth trajectory in the third quarter of 2024, growing by 3.46% year on year from 3.19% in the second quarter of 2024
The growth rate was primarily driven by the non-oil sector, which reflects strong gains in the services sub-sector. The Eurobonds market is expected to continue positive activity, with increased buying interest across the curve, particularly in Nigeria, Angola, and Egypt.
#Foreign Investors Raise Bet on Nigeria’s Eurobond as Economy Grows GCR Revises Outlook on MyCredit to Stable, Affirms Rating
