Nigeria Eurobonds Face Selloffs, US Treasury Yields Spike
The yield on Nigerian sovereign Eurobond shifted higher amid negative investor sentiment across African issuers, primarily driven by inflation outlook and fiscal pressures.
The US yield surged sharply as inflation worries continue to shift offshore portfolio managers’ appetite, with the 30-Year Treasury yield topping the roof.
The average yield on Nigeria’s US dollar-denominated bonds rose 4bps to 7.05%, reflecting a softening in global investor interest. The trading action signalled an unfavourable outlook for Nigeria’s dollar-denominated sovereign obligations as inflation worsened.
The African issuers saw a bearish tone with selloffs in Egypt, Angola, Ghana and South African papers, a portfolio adjustment triggered by rising geopolitical tensions in the Middle East and concerns over possible disruptions to oil supply through the Strait of Hormuz.
In addition, higher U.S. Treasury yields weakened sentiment across emerging-market Eurobonds, triggering sell-offs in Nigerian sovereign bonds.
AIICO Capital Limited said selling pressure was most pronounced in the short-to-mid segment, where the MAR 2029 and FEB 2030 bonds gained 14bps and 13bps, respectively, to close at 6.00% and 6.43%, respectively.
At the long end, yields also trended higher, with the JAN 2046 and JAN 2049 papers rising by 4bps each to 8.12%, while the SEP 2051 bond climbed 5bps to 8.20%.
Inflation worries sent US Treasury yields higher, traders reported, and African Issuers became casualties of profit-taking in the international market.
Specifically, the U.S. Treasury yields rose to multi-month highs in May 2026, with the 10-year note reaching 4.69%, its highest level since January 2025, and the 30-year yield climbing to 5.2%, the highest in 19 years.
This increase is driven by heightened inflation fears, a shift toward a more hawkish stance in Federal Reserve rate expectations, and geopolitical risks associated with the conflict in Iran.
Overall, the average benchmark yield increased by 4bps day-on-day to close at 7.05%. #Foreign Investors Trim Nigeria’s Eurobond as US Yields Spike PenCom, NLC to Begin Crackdown on Pension Defaulters in Lagos
