Nigeria’s Eurobond Yield Climbs to 9.64% over Bearish Play

Nigeria’s Eurobond Yield Climbs to 9.64% over Bearish Play

In Nigeria’s sovereign Eurobonds market, sell pressure across the short, mid, and long end of the yield curve nudged the average yield upward to 9.64%. The market experienced selloffs after foreign portfolio investors (FPIs) took positions earlier in the week on the back of elevated yields on Nigeria’s sovereign U.S. dollar bonds in the international capital markets.

The Eurobond market faced a severe downturn on the last day in Oct. 2024, as the African curves felt the impact of disappointing quarterly results from major technology companies. The bears regained control of the Eurobond market, closing the month on a negative note with pronounced offers across the curve, TrustBanc Financial Group said in a note.

Notably, the Mar-29 maturity recorded the largest yield increase, rising by 12 basis points. Month-on-month, the average benchmark yield inched higher by 2bps to close at 9.6%, the investment firm said. 

During the month, the Eurobond market displayed mixed sentiments, leaning towards a bearish outlook. Strong U.S. economic data drove yields higher as traders scaled back expectations of an aggressive rate cut.

Despite this, FPIs returned to the market picking up maturities at attractive levels. Similar bearish sentiment was observed across the curve in Ghana, Egypt, and Angola.

The Eurobond market faced a severe downturn yesterday as the African curves felt the impact of disappointing quarterly results from major technology companies, according to AIICO Capital Limited. The S&P 500 fell by 1.4%, while the Nasdaq Composite declined by 2.3%. Both indexes are on pace for a second consecutive day of losses.

Microsoft’s shares dropped by 5.5% after the tech giant’s revenue forecast let down investors, overshadowing a positive quarterly earnings report. Meta Platforms experienced a 4% decline after the parent company of Facebook fell short of Wall Street’s user growth expectations and warned of a significant increase in capital expenditures for 2025.

In the secondary market for FGN bonds, trading activity was subdued, resulting in a 21 basis point rise in the average yield, reaching 19.51%. #Nigeria’s Eurobond Yield Climbs to 9.64% over Bearish Play CBN Defends Naira with $39m in Forex Market