Nigeria’s US Dollar Bond Yield Surges after Sell Pressure

The average yield rose 12 basis points as Nigeria’s US dollar bonds trading in the international market witnessed sell pressures amidst rising inflation rate in the country.  The risk off sentiment was provoked by worsening consumer price index which printed at 33.20%, a 10% above 23.20% reading in April 2023.

The Nigerian sovereign Eurobond yield has been suppressed below 10% as authority continues to overhauling the structure of the economy with policy re-direction. US Treasury notes has also seen some sort of risk off sentiment amidst dicey expectation that Fed would cut rate in June, 2024. Naira to Appreciate to N1200 vs US Dollar -Goldman Sachs

In the local debt capital market, there have been record of sustained increase in demand for government bonds, Treasury bills and OMO bills due to higher rates pricing across tenors.

Benchmark yield on naira assets average 20% and investors are waiting to see catalysts that would cause yield repricing as widening inflation rate reduce real return on investment.

In the secondary market for FGN Bonds, the average yield inched higher by 0.03% to close at 19.29% on Monday. In Nigeria’s sovereign Eurobonds market, trading activity exhibited a bearish trend, resulting in a rise in the average yield by 0.12% to reach 9.86%.

Yields on benchmark U.S. 10-year Treasuries hit five-month highs on Monday after stronger-than-expected retail sales data from March suggested the Federal Reserve could delay cutting interest rates this year.


The yield on 10-year US Treasury notes was up 12.9 basis points at 4.628%. The yield on the 30-year Treasury bond was up 13.5 basis points at 4.739%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 5.3 basis points at 4.935%, but remains slightly below its highs from last week.

Nigeria’s debt office raised N626.82 billion from bonds auction conducted on Monday, selling 2029 FGN Bond at 19.30%, 7-year bond was sold at 19.75% and 10-year bonds was priced at 20%.

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