Selloffs of US dollar assets brought on by risk-off emotions on the global market caused the benchmark yield on Nigeria’s government Eurobonds to increase by 12 basis points to 9.94%.
In the face of uncertainty, portfolio managers issue US dollar bonds issued by Nigeria, even if the benchmark yield is still below 10%. Because of the detrimental effects of certain government actions, inflation and exchange rates have gotten worse.
To put Nigeria on the path to prosperity, the government has started a series of initiatives on macroeconomic policy reversal, review, and formulation. The authorities has depreciated the naira several times during the reform process due to a paucity of foreign money.
The citizenry’s situation has gotten worse, yet the financial markets are still incredibly stable. Yesterday, the value of the stock market exceeded N56.6 trillion, but the exchange rate deteriorated and went beyond N1500.
Also, the local bond market traded negative. In the secondary market, trading activity was slightly negative, leading to an increase in the average yield by 9 basis points to 15.85%.
This was on the back of yield expansion of 192 basis points and 3 basis points in the MAR24 FGN Bonds and JUN-38 FGN bonds. Last week in the Eurobond market, the average yield declined by -10bps to close at 9.8% on Friday.
