Nigeria’s US Dollar Bond Yield Rises to 10.31%
The average yield on Nigeria Eurobond yield climbed by four basis points in the international market due to sustained selloffs, according to traders notes.
Foreign investors are seeking portfolio rebalancing following Nigeria’s subpar credit rating. The latest Riskoff sentiment has continue to drag prices lower, which yield surged.
Nigeria has continue to increase debt burden from multilateral lenders, though at abysmally lower rate but weak fiscal performance has negatively impacts credit rating which Moody’s kept as speculative grade.
MarketForces Africa reported that Moody’s recently affirmed Nigeria’s foreign and local currency ratings at Caat1, suggesting the sovereign nation poor credit standing.
Price actions in the marker had been subdued, and mostly bullish on the negative sentiment set in over weeks with sustained selloffs across the curve.
Nigeria’s inflation and tattered key performance indicators have called for yield repricing in the local debt capital market. However, debt office has remained tight fisted with spot rates on issuance.
The hope the US Fed will cut rate brought another dimension into play, though uncertain, but the European Central Bank decision to slash rate has sent signal about global rates reversal from hawkish pose in the coming months.
The sovereign Eurobonds market was predominantly bearish across maturities, thus pushing the average yield higher by 4 basis points to 10.31%, Cowry Asset Management Limited said in a note.
US Treasury yields move little and in opposite directions in a day without major data releases. The 30-year US Treasury yield declined 0.020 percentage point to 4.377% on Monday.
The 10-year US Treasury yield declined 0.008 percentage point to 4.248%, snaps a two-trading-day streak of rising yields
Also, the 2-year US Treasury yield rose 0.006 percentage point to 4.734% while the price fell. Yusuf Approves N5bn Fertiliser Purchase for Kano Farmers
