Nigeria US Dollar Bond Yield Climbs to 9.54%
The average yield on the Nigerian U.S. dollar bond advanced slightly due to offshore investors that were repositioning their portfolio ahead of year-end activities. The Eurobond market has recently witnessed sell pressure on the African curve, including Nigeria, following an inflation rate surge and weak local currency.
Analysts anticipate sentiment will improve on the back of FX reform, economic growth, and a potential adjustment to the benchmark interest rate in 2025. The Eurobond market experienced a subdued week, reflecting mixed sentiments across Sub-Saharan Africa and North African papers.
Festive holiday anticipation influenced investor activity, leading to limited trading volumes and a bearish undertone midweek. Mixed sentiments in the last trading session were observed, with most participants having closed their books for the year.
Trading activities remained low across the African curves, and the average mid-yield for Nigerian Eurobonds edged up by 2 bps week on week to close at 9.54%. Sell pressure across the short, mid, and long ends of the yield curve led to a marginal increase in the average yield, Cowry Asset Limited said in a note.
Analysts at TrustBanc Financial Group stated that the Eurobond segment began the week on a positive note, rebounding from last week’s sell-off. The recovery was short-lived as investors locked in profits ahead of the Christmas break. On Friday, the market exhibited mixed trading activity, with a slight bearish tilt.
Notably, the Nov-27 (+4 bps) and Nov-47 (+3 bps) maturities recorded the most significant yield increases this week, TrustBanc stated.
Investment analysts said they expect the Eurobond market to remain quiet in the new week. Trading volumes are likely to be light, and prices are expected to fluctuate within a narrow range, AIICO Capital Limited said in a note. #Nigeria US Dollar Bond Yield Climbs to 9.54% FBN Holdings Records Huge Off-Market Shares Transactions
