Nigeria US Dollar Bonds Rally, Yield Falls Below 10%
The average yield fell below 10% as Nigeria’s US dollar bonds rallied in the international market, thanks to foreign portfolio investors’ improved sentiment on the sovereign asset trading activities.
The renewed demand for the Eurobond papers reversed the previous trend where offshore sell-down interest—a trend that has become a norm across African papers—was part of portfolio rebalancing.
Nigeria’s sovereign curve experienced increased demand despite pressures on oil-linked issuers like Angola. African Eurobonds mixed amid broad-based profit taking across sub-Saharan and North African curves, with sell orders dominating total flows.
Investor demand had a substantial effect on Nigeria’s sovereign Eurobond market, driving bullish sentiment throughout the long, mid, and short ends of the curve, Cowry Asset Limited said in a note.
This was especially notable for the Sep-2028 and Mar-2029 Eurobonds, which contributed to a decline in yields across the market. As a result, the average yield decreased to 9.81%.
Fixed income market analysts said the market is likely to see mixed to bullish sentiment as selective investors target value opportunities across specific instruments.
In April, the global fixed-income market remained volatile, largely influenced by the U.S. tariff actions. Early in the month, U.S. Treasury yields fell alongside risk assets in response to the announcement of reciprocal tariffs.
However, market sentiments improved following the U.S. decision to implement a 90-day tariff pause for most countries, excluding China, which led to renewed interest in U.S. Treasuries.
During the same period, the U.S. economy posted a 0.3% contraction in the first quarter of 2025, driven by a sharp increase in imports and reduced government spending.
Shifted global sentiment in April drove a significant sell-down in African Eurobonds, and foreign investors rotated out from Nigeria’s sovereign Eurobond papers, as it was for other African issuers—with yields nearing 12%. United Capital Grows Profit by 64% to N5.89bn in Q1
