The average yield on Nigeria’s sovereign US dollar bonds fell to 9.44% last week, as foreign portfolio investors (FPIs) showed increased appetite for the instruments. The 2 bps decline reflects higher demand for Nigerian Eurobonds across various maturities, including NOV-2025, NOV-2027, SEP-2028, MAR-2029, FEB-2030, JAN-2031, FEB-2032, and FEB-2038, according to Cowry Asset Limited.
The week began on a bearish note, with bond prices in Sub-Saharan Africa and North Africa under pressure following robust U.S. jobs data that dampened expectations of near-term Federal Reserve rate cuts. However, a mid-week rebound was fueled by softer U.S. inflation data and optimism surrounding African sovereign debt, AIICO Capital Limited noted.
Despite the temporary recovery, caution returned as investors locked in gains, leading to mixed-to-bearish trends by week’s end. The average mid-yield on Nigerian Eurobonds closed at 9.4%, with the MAR-2029 maturity seeing the largest yield increase, ending at 9.25/9.03.
Market dynamics were further shaped by evolving global monetary policy expectations. TrustBanc Financial Group Limited highlighted that the tug-of-war between bulls and bears created volatility throughout the week. While demand picked up mid-week, profit-taking activities limited broader market gains.