Nigeria Eurobond Maturing in Nov 2025 Faces Sell Pressure
Offshore investors offloaded interest in Nigeria’s Eurobond maturing in November 2025 and the country’s other US dollar-priced dollar bonds at the international market. The market has started to react to declining yield across the sovereign borrowing papers, signaling weak investors’ sentiment despite improved macro indicators.
Nigeria’s headline inflation rate declined to 22.22%, and some analysts said this signals the possibility the Central Bank of Nigeria (CBN) would start cutting back its elevated benchmark interest.
But elevated yield on naira assets has been noted as the carrot that brought hot money into the economy; a pause on the high interest rate environment could force foreign portfolio investors to convert investment in fixed income market to dollars.
“Nigeria cannot afford huge dollar outflow; it could be straining for the naira to withstand”, an investment expert told MarketForces Africa in a phone call. Yesterday, the Nigerian Eurobond market closed bearish, driven by sell-off pressure across the yield curve—most notably in the NOV- 2025 bond.
As a result, yields rose, pushing the average yield up by 13 basis points to 8.67%, analysts at Cowry Asset Limited told investors in a note.
African Eurobonds saw mixed to bearish trading as oil prices fell. Oil prices closed slightly lower on Wednesday as a rise in U.S. fuel stockpiles and fears about the broader economic effects of American tariffs offset hints of stronger demand.
Brent crude slipped by 19 cents to settle at $68.52 per barrel, while U.S. West Texas Intermediate edged down 14 cents to $66.38. Gold prices initially surged after reports surfaced that President Trump was planning to fire Federal Reserve Chair Jerome Powell.
However, gains eased after Trump denied the claim—though he didn’t completely dismiss the possibility, citing a probe into a $2.5 billion Fed renovation. Spot gold rose 1% to $3,354.01.
The Fed’s July rate decision will hinge on tariffs, inflation, and earnings data. Market expectations for a rate cut are fading, with September now appearing unlikely. #Nigeria Eurobond Maturing in Nov 2025 Faces Sell Pressure Zenith Bank Now Value at N3trn in Nigerian Bourse
