Nigeria, Egypt Yields Up as African Issuers Face Sell Pressure
Led by sell pressure in Nigeria, Egypt, and Angola issuers, the African Eurobonds market traded largely bearish due to investors’ reaction to geoeconomic uncertainties and policy choices.
Oil-linked African issuers’ yields edged higher as foreign investors reacted to various macroeconomic data, such as higher-than-expected U.S. weekly jobless claim data.
The market risk-off positions heated up significantly after the Bank of England (BoE )’s dovish interest rate decision and rising tension ahead of U.S. –Iran negotiation.
Oil prices eased due to easing tensions in the global commodity market. The U.S. and Iran agreed to a meeting in Oman on Friday for diplomatic nuclear talks. Hence, oil prices reduced, while the market anticipates that further reduction could affect oil issuers’ fiscal performance.
Angola and Nigeria’s economic growth depend on oil revenue performance, analysts said, saying Egypt is just coming out strong after significant fiscal weakness in 2025.
Traders reported that broad-based selling was evident across major African issuers such as Nigeria, Angola, and Egypt, with Nigeria experiencing sell pressure across the entire yield curve.
Nigeria’s sovereign segment ended bearish, with average yields rising 4 basis points, demonstrating weakened interest and cautious sentiment among global investors toward the nation’s dollar-denominated sovereign debt.
Notably, Feb-32 had the highest yield expansion, 7bps (6.94%), while yield on Jan31, Dec-34, Jan-36, Jan-46 and Sep 2051 rose by 6bps, each.
Consequently, the average Nigerian Eurobond benchmark yield rose by 4bps to7.10%, according to AIICO Capital Limited. Analysts expect the market to trade in line with the outcome of the U.S.-Iran negotiations. Global Crypto Market Cap Crashes to $2.2trn on Extreme Fear
