Nigeria Eurobonds Rally amidst Inflation Data Delay
Nigeria’s sovereign Eurobonds rallied at the international debt market amidst delay in inflation data for January. Foreign investors continued to take position on the back of an elevated yield, and potential US Fed rate slicing.
Traders said they witnessed bullish sentiment across Nigeria’s sovereign Eurobonds market, covering short-, mid-, and long-term maturities. Analysts explained that trading activity was however low due to the US holiday, leading to reduced liquidity in SSA and North African securities.
Lagos investment firm, TrustBanc Financial Group Limited said buying interest persisting across the curve as portfolio investors leveraged on attractive yields in the market. Notably, the Nov-25 (-5bps) and Jan-31 (-4bps) maturities recorded the most significant yield declines.
The level of positioning witnessed by US dollar investors led to a 0.02% decrease in the average yield, closing at 9.05% on the day, Cowry Asset Limited told investors in a note.
The National Bureau of Statistics, NBS, has been unable to release inflation data from January, a development some market analysts attributed to the rebasing exercise. The market expects inflation data for the month to reduce drastically, with potential to impacts money, asset pricing in the fixed income market.
In related news, Ghana’s new administration has initiated discussions with the IMF to revise its $3 billion bailout program, addressing issues related to overly optimistic revenue projections, as mentioned by President John Mahama.
Additionally, Kenya’s National Treasury has adjusted its fiscal deficit forecast to 4.9% of GDP for the current year, aiming to reduce it to 4.3% by 2026, with a total updated shortfall of $6.67 billion. #Nigeria Eurobonds Rally amidst Inflation Data Delay Telecom Hike: LCCI Seeks Continuous Stakeholders’ Engagement
