Nigeria’s Sovereign Eurobonds Yield Climbs by 12bps
The benchmark yield on Nigeria’s sovereign Eurobonds climbed by 12 basis points to 9.94% due to selloffs on US dollar assets triggered by risk-off sentiments at the international market.
Portfolio investors release Nigeria’s US dollar bonds amidst uncertainties, though the benchmark yield continues to hover below 10%. Inflation and exchange rates have worsened due to negative impacts of some government policies.
Nigeria government has initiated series on macroeconomic policy reversal, review and formulation to set the country on the path for growth. The authority is facing foreign currency shortage challenge and has devalued naira in multiple folds amidst reform.
Things has worsened for the citizen but the financial markets remain rock solid. Equities market crossed N56.6 trillion yesterday but exchange rate worsened above N1500 threshold.
Also, the local bond market traded negative. In the secondary market, trading activity was slightly negative, leading to an increase in the average yield by 9 basis points to 15.85%.
This was on the back of yield expansion of 192 basis points and 3 basis points in the MAR24 FGN Bonds and JUN-38 FGN bonds. Last week in the Eurobond market, the average yield declined by -10bps to close at 9.8% on Friday. #Nigeria’s Sovereign Eurobonds Yield Climbs by 12bps
