African Eurobonds, including Nigeria’s U.S.-denominated sovereign instruments, posted gains last week as foreign investors repositioned their portfolios amid a weaker U.S. dollar, rising unemployment concerns, and delayed inflation data releases in the United States.
Global investors reassessed opportunities across Africa, showing renewed interest in commodity-linked issuers like Nigeria, and expressing positive sentiment toward Angola, Egypt, and Ghana.
Nigerian Eurobonds enjoyed strong performance through the week, buoyed by increased offshore demand ahead of the upcoming $1.118 billion maturity of the November 2025 sovereign bond. Analysts say the refinancing expectation lifted confidence along the entire yield curve.
Average Eurobond yields declined by 14 basis points to 7.76%, indicating improved appetite for Nigerian debt. Fixed-income strategists attribute the shift to more stable macroeconomic indicators, firmer fiscal conditions, and growing expectations of cautious policy management.
The week opened with strong interest across the curve, supported by sustained demand. Momentum held through midweek as investors continued to target attractively priced positions. A soft close to the week followed as some investors took profits following earlier gains.
AIICO Capital noted that broader African Eurobonds experienced mixed-to-positive trading patterns, supported by a weaker USD and softer U.S. labour data. Expectations of a potential December U.S. Federal Reserve rate cut further bolstered risk appetite.
Investor sentiment strengthened as U.S. jobless claims declined and inflation readings in the U.K. and EU showed signs of softening. Additional optimism followed the rise in the U.S. unemployment rate to 4.4% in September, helping amplify the risk-on environment.
By week’s end, Nigeria’s Eurobond market closed on solid ground, with yields consolidating at 7.76%. Analysts expect continued positive momentum in the near term, backed by stable reserves and growing anticipation of monetary easing in December.
