Nigeria’s Eurobond Yield Soars To 12.06%

DMO Set To Auction N150bn Bond On FG's Behalf

As trading operations in the fixed income market concluded on a mixed note, selloffs on Nigeria’s Eurobond on the global debt capital market increased the average yield to 12.06%. The local bond market moved sideways with a pocket of trading on very long-dated debt instruments as concern over the 2023 presidential election subsided.

MarketForces Africa was informed by analysts that investors would witness yield repricing in the second quarter as the government made up for its budget deficit through local borrowing. According to investment bank Cowry Asset Management Ltd, the prices of FGN bonds increased today for the bulk of the maturities.

The average secondary market yield decreased as a result to 13.21%. Cowry Asset Management informed customers via email today that the 10-year and 15-year FGN Bond rates were higher by 11 basis points and 3 basis points, respectively.

The equivalent yields of these FGN Bonds decreased to 12.93% (from 13.04%) and 14.68% (from 14.71%) as a result of increased demand.

The 20-year FGN note was 3 basis points cheaper, according to fund/asset managers, and its equivalent yield increased to 15.75% (from 15.72%). It is noteworthy that the 30-year bond yield was constant at 15.20%.

Across the benchmark curve, Cordros Capital told clients that the average yield declined at the short (-12bps) and long (-4bps) ends as investors demanded the JAN-2026 (-40bps) and JUL-2045 (-15bps) bonds, respectively.

Meanwhile, the average yield closed flat at the mid-segment, according to fixed income analysts and traders’ notes reviewed by MarketForces Africa.

Elsewhere, the value of the FGN Eurobond decreased for all of the maturities amid sustained bearish sentiment. Notably, the average secondary market yield expanded to 12.06%.

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