Nigeria’s Eurobonds Yield Shrinks as African Issuers Rally
The Eurobonds market mirrored this positivity, as average yields retreated 7bps to 6.72%, underscoring strong global investor interest and an increasingly favourable outlook toward Nigeria’s dollar-denominated sovereign obligation
Trading in the international market was buoyed by improving global risk sentiment, as falling oil prices fueled optimism.
The market recorded significant demand for African oil-linked issuers, dragging yield lower in anticipation of stronger fiscal performance driven by higher oil prices in the global commodity market.
Oil prices have increased by about 100% since February due to tensions between the U.S. and Iran, which may be easing. While energy crisis stokes inflation concerns, top oil-producing African countries have become beneficiaries of the unintended consequence of the Middle East war.
This environment, combined with selective investor risk-taking, supported a modest rally across the curve as market participants cautiously shifted toward emerging market assets, according to AIICO Capital Limited.
However, sentiment became more cautious later in the session due to persistent geopolitical uncertainties and fragile ceasefire prospects, which continued to restrain overall risk appetite.
The curve closed on a bullish note, with yields declining across all maturities. The most notable compressions were recorded at the mid-curve, particularly the Jun 2031 and Feb 2032 bonds, which fell by 11bps each, reflecting stronger demand in that segment.
Consequently, the average benchmark yield declined by 7bps to close at 6.72%. Investment analysts expect the market to maintain a positive but selective trajectory in the coming session, as investors balance improved risk appetite against lingering global uncertainties.
U.S. Treasury yields continued to fall on Thursday as investors focused on the latest developments in the Middle East, and their potential impact on the outlook for inflation and interest rates.
The 10-year U.S. Treasury note yield — the key benchmark for U.S. government borrowing — was more than 2 basis points lower in the early hours, at 4.3280%.
The 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, fell by more than 2 basis points to 3.8469%.
Meanwhile, the 30-year Treasury bond yield was 4.9204%, down 2 basis points. One basis point is equal to 0.01%, and yields and prices move in opposite directions. Oil Prices Climb over Unsettled US-Iran Peace Talks
