Nigeria’s Eurobond market experiences a notable dip in yields as foreign investors actively position themselves in the international debt space. The average yield decreases by 13 basis points to 9.49%, driven by optimism over Nigeria’s economic outlook for the year.
Market analysts attribute the decline to bargain hunting across short, mid, and long-term maturities on the yield curve. Global investors are reportedly seeking safe-haven assets as expectations of U.S. Federal Reserve rate cuts increase. This trend attracts capital inflows to African markets, including Nigeria, where yields remain relatively high.
The market also reflects investor confidence in Nigeria’s monetary policies aimed at combating inflation. Traders note that while the year starts with mixed activity, stronger momentum develops midweek, particularly for Nigerian, Angolan, and Egyptian sovereign bonds.
Angola and Nigeria lead a rally in the Eurobond market, supported by rising oil prices, while Egypt benefits from anticipated International Monetary Fund (IMF) support that could unlock $1.2 billion in funding. By the end of the week, Nigerian bonds for November 2025 and February 2032 show the most significant declines in yield, with drops of 29 basis points and 21 basis points, respectively.
While the Eurobond market is seeing a bullish tone, analysts remain cautious, closely monitoring global macroeconomic conditions. The expectation is that foreign portfolio investments (FPIs) will continue to take advantage of attractive yields, keeping the market buoyant in the short term.
The coming week is likely to witness sustained investor interest, driven by elevated yields and improving sentiment about Nigeria’s economic trajectory. However, global economic shifts, including U.S. monetary policy adjustments and commodity price fluctuations, will remain key factors shaping the market.
This trend underscores the importance of strategic fiscal and monetary policies to ensure Nigeria remains attractive to international investors while addressing domestic economic challenges.
