Nigerian Eurobond Yield Climbs to 10.14% over Selloffs – Traders
The average yield on Nigeria’s sovereign Eurobonds faced selling pressure in the international market on Tuesday ahead of the national protest starting in two days.
Foreign investors trading Nigerian US dollar bonds in the market offloaded some papers amidst the worsening economic condition and sustained risk off sentiment in the debt securities.
Traders at Cowry Asset Limited told investors in an emailed noted that the negative sentiment across various maturities led to a 4-basis point increase in the average yield, reaching 10.14%.
Financial market data which mirror the nation’s economic policy has remained negative. Latest adjusted to monetary policy rate has raised borrowing costs.
Despite interest rate tightening, inflation rate has remained stubbornly high with the hope price level will retreat in July reading as base effect set in.
The local fixed income market players have started to incorporate changing market dynamics into their portfolio strategies. The authority hiked spot rates on local bonds sold to market participants in its latest auction after an interest rate adjustment.
At the early hours of trading, the Eurobonds market sustained a bearish theme, with selling interests observed across the SSA and North African papers, AIICO Capital said in a report.
However, the market settled flat, given the influx of some buyers towards the closing bell, the firm said. In a data release on Tuesday, US consumer confidence printed at 100.3, stronger than both the estimate of 99.70 and the previous figure of 97.80. #Nigerian Eurobond Yield Climbs to 10.14% over Selloffs – Traders US Slowdown Looms Amid Delicate Political, Geopolitical Uncertainty –Fitch
