Nigeria Eurobond Yield Falls Below 9% Ahead of Borrowing
The Nigerian US dollar-denominated bonds borrowing costs declined in the international market as foreign investors opened and closed positions across African issuers and rated sovereign assets.
The average yield on Nigerian Eurobonds, however, declined to near 9% amidst expectations that the government will ramp up borrowing from external markets in the second half of the year.
Nigeria’s US dollar bonds have seen sharp demand from foreign portfolio investors since after the country’s successful exit from the IMF debt list in Q2. The average yield level reflects renewed the current market conditions and hope of economic recovery in Africa’s largest economy by size of population.
The SEP-28 bond witnessed the most significant pressure, leading to a notable rise in its yield. African Eurobonds experienced a volatile week, swinging between bullish and bearish sentiment driven by shifting geopolitical and macroeconomic factors.
The week began on a positive note as easing Israel-Iran tensions revived global risk appetite, boosting demand for oil-linked issuers like Nigeria and Angola.
However, midweek sentiment turned mixed as renewed geopolitical concerns, weak U.S. retail data, and a 4% surge in Brent crude raised caution. Ahead of the Fed decision, most African Eurobonds rallied, excluding Egyptian papers, which remained pressured, according to AIICO Capital Limited.
The Fed held rates at 4.25–4.50% but adopted a more hawkish stance, cutting its 2025 rate cut projections and revealing stagflation forecasts. By week’s end, market tone softened amid ongoing conflict risks and the Juneteenth holiday lull.
Despite volatility, Nigeria’s average Eurobond yield fell 17 bps week on week to 8.98%, fixed income market analysts said. AIICO Capital Limited expects Investors to closely monitor escalating Middle East tensions and a series of scheduled Fed speeches, both of which could significantly influence market direction. #Nigeria Eurobond Yield Falls Below 9% Ahead of Borrowing Oil prices Rise Sharply in 1-Week over Israel, Iran Conflict
