Nigerian, Angolan, Egyptian Eurobonds Rally on FPIs Optimism

Nigerian, Angolan, Egyptian Eurobonds Rally on FPIs Optimism

Nigerian, Angolan, and Egyptian sovereign Eurobonds rallied in the international capital market, supported by enhanced optimism among foreign portfolio investors (FPIs).

African issuers courted investors’ attention amid a positive price movement in the global commodity market, following significant portfolio divestment from dollar-indexed assets.

Offshore investors shifted their attention to oil-linked issuers amid expectations of improved macroeconomic conditions and anticipated fiscal performance and GDP growth in 2026.

However, market data showed that oil prices fell on Thursday, reversing the previous sessions’ gains, after U.S. President Donald Trump softened threats against Greenland and Iran, and as investors assessed the supply and demand outlook.

Brent crude dropped by 1.63% or $1.06, hovering around $64.02 per barrel, while U.S. West Texas Intermediate (WTI) dipped by 1.80%, to around $59.41.

Investors seeking safe-haven assets dumped U.S Treasury notes, and the risk-off sentiment drove yields curve upward amidst a surge in personal consumption expenditure (PCE) data.

The US Personal Consumption Expenditures (PCE) price index accelerated slightly in November, aligning with market expectations.

The African Eurobonds market traded positively as investors reacted to the U.S. November PCE data.  PCE price index—the Federal Reserve’s preferred inflation metric—rose from 2.7% in October to 2.8% in November, matching consensus forecasts.

Fixed income market analysts said while this marginal acceleration remains within the range observed over the past two years, averaging 2.6% during that period, the rate remains notably above the Federal Reserve’s 2% mandate.

Traders at AIICO Capital Limited reported that buying interest was evident across the Nigerian, Angolan, and Egyptian curves, with yields declining on most Nigerian maturities.

Notably, Nigerian paper with Nov-2027 expiration recorded a high yield drop of 15bps to 5.58%, while Feb-2030, Jan-2046, and Jan-2049 recorded the lowest yield decline of 4bps each to 6.19%, 8.34%, and 8.33%, respectively.

Consequently, the average Nigerian Eurobond benchmark yields eased by 7bps to close at 7.11% on Thursday, according to AIICO Capital Limited. Nigerian Top 5 Banks’ Valuation Increases to N12 Trillion