Nigeria’s Eurobond Yield Falls Sharply, Closed at 8.80%
The average yield on Nigeria’s sovereign Eurobond fell sharply in the international market due to sustained demand from offshore investors seeking to take positions on economic recovery hopes and US Fed rate maintenance.
The sovereign asset experienced a bullish moment driven by renewed investor demand across the curve. The NOV47, SEP-28, and SEP-51 bond saw the most buying interest, resulting in a sharp yield drop, investment firm Cowry Asset Limited said in an investor note.
Fixed income market analysts highlighted that the broad-based demand led to a 14 bps decline in average yields on Nigerian US dollar bonds. Consequently, the average Eurobond yield settled at 8.80%.
African Eurobonds rallied, led by strong gains in Nigerian and Egyptian papers, as markets welcomed an Israel-Iran ceasefire and dovish Fed signals. Chair Powell hinted at potential near-term rate cuts despite tariff inflation risks. However, Angola’s bonds underperformed due to oil price concerns and debt sustainability worries at current energy price levels.
A slew of investment banking experts explained that the prevailing market trend is likely to continue this week unless unexpected disruptions occur.
MarketForces Africa reported on Friday that Eurobond yields declined by 28 bps to 8.97%, signaling higher demand for the bonds last week. “If disinflation continues, demand for bonds will continue to increase, prices for bonds will continue to increase, while bond yields will continue to decline.” U.S. Resumes Student Visas for Foreigners, Demands Social Media Access
