Nigerian Eurobonds Yield Dips to 9.4% as FPIs Appetite Rises
The average yield on Nigeria’s sovereign US dollar bond declined in the international market as foreign portfolio investors (FPIs) appetites improved. The yield declined by 2 basis points to 9.44% as offshore investors boosted their portfolios with Nigerian Eurobond, according to Cowry Asset Limited.
Market analysts spotted demand for NOV-2025, NOV-2027, SEP-2028, MAR2029, FEB-2030, JAN-2031, FEB-2032, and FEB-2038 tenors. The Eurobond market experienced a volatile week, facing a bearish trend as prices in Sub-Saharan Africa and North African regions plummeted due to reduced expectations for Fed rate cuts following a strong jobs report.
In its note, AIICO Capital Limited said a rebound was observed mid-week, driven by bullish sentiments across African sovereigns, spurred by discussions within the U.S. economic team, and softer inflation data.
Despite this, caution returned with notable sell-offs as participants realised gains. Towards the week end, mixed to bearish trends prevailed, with the average mid-yield for Nigerian Eurobonds declining by to 9.4%.
The week opened on a negative note, driven by robust U.S. jobs data, which reinforced expectations of the Federal Reserve maintaining elevated interest rates longer than previously anticipated. Mid-week saw a period of volatility, with the bulls and bears vying for dominance, TrustBanc Financial Group Limited told investors in a note.
The Eurobond market closed the week on a bearish note, with selling pressure evident across the curve. Notably, the Mar-29 maturity recorded the most significant yield increase, closing at 9.25/9.03. #Nigerian Eurobonds Yield Dips to 9.4% as FPIs Appetite Rises FBN Holdings Records Huge Off-Market Shares Transactions
