Nigeria’s Eurobonds Yield Rises to 11.7% over Sell Pressure
Nigeria’s foreign costs of borrowing spiked as benchmark yield on the sovereign Eurobonds spiked to 11.71% in the international market as offshore investors continue to exit African markets.
Bearish sentiment prevailed in Nigeria’s sovereign Eurobond market, with widespread sell-offs observed across short-, mid-, and long-term maturities.
The week started off bearish, with heavy selling pushing the average benchmark yield to 11.65%, its highest level since October 2023, amid lingering concerns over global trade tensions.
Mid-week was marked by heightened volatility, with investor sentiment swinging between risk appetite and caution. By week’s end, the market closed on a mixed note, with some buying interest on select papers while selling persisted on others, particularly at the short- to mid-end of the curve.
The Nov-2025, Nov-2027, and Mar-2029 bonds experienced particularly strong investor selloffs as foreign portfolio investors rotated out amidst a shift in global investment market sentiments and conditions.
Consequently, the average yield rose by 63bps to 11.71%, reflecting weakened demand and downward pressure on Eurobond prices, Cowry Asset Management analysts said in a note.
The patterns were similar across African Eurobonds. Last week, sub-Saharan African Eurobonds faced significant pressure amid escalating global trade tensions.
President Trump’s imposition of a 145% tariff on Chinese imports prompted swift retaliation from China, which raised tariffs on U.S. goods to 125%, intensifying fears of a prolonged trade war.
This uncertainty led to a broad sell-off in emerging market assets, with Nigerian Eurobond yields rising fast and furiously in the light of government revenue risks.
Investment firm said while a brief rebound occurred midweek, driven by bargain hunting and a dovish tone from the Federal Reserve Chair, the gains were short-lived as renewed tariff escalations reignited risk aversion among investors.
Nigeria’s Eurobonds Yield Rises to 11.7% over Sell Pressure First Holdco Falls below N1 Trillion in Equities Market
