Nigeria’s Eurobond Yield Rises to 10% as Selloffs Persist
Nigeria’s US dollar bond or Eurobond yield climbed above 10% due to the latest selling rally in the international capital market. Investors sold down their interest ahead of the US Fed rate cut this month. The risk off sentiment was seen across the short, belly, and long end of the curve.
Nigeria is still suffering an acute FX shortage, which has plunged the value of the local currency to an all time high. Benchmark U.S. government bond yields were hovering near a 14-month low on Thursday as traders awaited jobs data would cement or counter concerns about a slowing economy.
The yield on the 2-year Treasury rose by 0.9 basis points to 3.783%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury added 1.5 basis points to 3.774%.The yield on the 30-year Treasury climbed 1.2 basis points to 4.072%.
Yesterday, in Nigeria’s sovereign Eurobonds market, sell sentiment prevailed across the short, mid and long ends of the yield curve, causing a 10 basis point rise in the average yield to 10.01%. #Nigeria’s Eurobond Yield Increases to 10% Benchmark Yield on Nigerian Bond Declines to 18.75%
