Nigeria’s US dollar bond or Eurobond yield has risen above 10% as a result of the recent selling rally in the international financial markets. Investors sold off their positions ahead of the US Fed’s rate cut this month. The risk-off sentiment was observed at the short, belly, and long ends of the curve.
Nigeria is still experiencing an extreme foreign exchange shortage, which has caused the value of the native currency to reach an all-time high. Benchmark US government bond yields were near a 14-month low on Thursday, as traders waited for jobs data to confirm or refute concerns about a weakening economy.
The yield on the 2-year Treasury rose by 0.9 basis points to 3.783%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury added 1.5 basis points to 3.774%.The yield on the 30-year Treasury climbed 1.2 basis points to 4.072%.
Yesterday, in Nigeria’s sovereign Eurobonds market, sell sentiment prevailed across the short, mid and long ends of the yield curve, causing a 10 basis point rise in the average yield to 10.01%.
