Nigerian Eurobonds Yield Shrinks Below 9%
The Nigerian sovereign Eurobonds yield shrank below 9% as foreign investors increased portfolio holdings as the local economy recorded 3.4% year-on-year growth in 2024.
The strong annual gross domestic product growth reported by the statistic office boosted bullish sentiment in Nigeria’s sovereign Eurobonds market, covering short-, mid-, and long-term maturities.
The buying momentum on the sovereign US dollar papers led to a marginal decrease in the average yield, closing at 8.97%. Trades also witnessed a bearish sentiment influenced by geopolitical tensions and tariff discussions. While the Nigerian curve showed modest recovery by the close, the Angola and Egypt curves remained slightly bearish.
Selling pressure was notable at the mid-section of the curve, while the Feb-32 and Jan-49 maturities attracted mild buying interest.
The yield on the US 10-year Treasury note stabilised above 4.3% on Wednesday after declining for five consecutive sessions as investors’ awaited key economic data to provide more clarity on the outlook.
The benchmark yield fell to its lowest level in over two months on Tuesday after data revealed US consumer confidence dropped 7 points to an eight-month low of 98.3 in February.
Growing economic concerns have led markets to price in two 25-basis-point rate cuts from the Federal Reserve this year. #Nigerian Eurobonds Yield Shrinks Below 9% Eterna Plc. Shrinks by 10% as Investors Sentiments Dive
