Nigeria’s Eurobonds Rally after Foreign Investors Cold Reaction
Nigeria’s Eurobonds rallied in the international market, reversing foreign portfolio investors (FPIs) cold reactions to the U.S.-initiated global trade war that caused funds to move out from African papers.
Bullish sentiment dominated Nigeria’s sovereign Eurobond market, with strong demand recorded across short-, mid-, and long-term maturities. Notably, the Nov-2027 and Nov-2025 instruments attracted heightened investor interest in the market, Cowry Asset Managers said in an investor note.
As a result, the average yield declined by 7 basis points to 10.94%, reflecting increased demand and upward pressure on Eurobond prices on Wednesday. Key maturities showed subtle shifts compared to recent sessions.
For context, the Nov-27 and Mar-29 Eurobonds edged lower, closing at 9.42% and 10.31%, respectively, from 9.47% and 10.34% in the prior session, TrustBanc detailed in its investor note.
Meanwhile, the Dec-34 maturity rose slightly to 11.12% from 11.01%, reflecting some selling pressure. Overall, the average benchmark yield declined by 7 bps.
The African Eurobonds closed with divergent performance, caught between positive regional developments and shifting global risk appetite, AIICO Capital Limited told investors.
Investment experts said selected sovereigns benefited from stronger commodity prices, while others faced modest selling pressure due to fiscal uncertainties and broader market repositioning. #Nigeria’s Eurobonds Rally after Foreign Investors Cold Reaction Pension Fund Assets Grows to N23.366 Trillion
