Nigeria’s Sovereign Eurobond Yield Dips to 9.74%
The benchmark yield on Nigeria’s sovereign Eurobond rose following positive trading activity as investors take position on expectation that the local economy would see healthy growth in 2024.
The authority has announced plan to issue another Eurobond in 2024 to finance budget deficit.
The increased Nigeria’s US dollar bonds buying in the sovereign Eurobond market on Monday spurred a slide decrease in the yield curve, down by 0.19% to 9.74%, according to traders at Cowry Asset Management Limited.
On the contrary, there was rapid sell down of Nigerian government bonds in the secondary market. The local investors’ pullout funds amidst inflation concerns. Real return on investment has widened as consumer price index increased to 33.20%.
In the market, the average yield on FGN bonds expanded marginally by 1bp to 19.0%. Across the benchmark curve, Cordros Capital Limited told investors that the average yield advanced at the short (+2bps) end.
The contraction was due to sell-offs on the MAR-2025 (+4bps) bond but was flat at the mid and long segments. # Nigeria’s Sovereign Eurobond Yield Dips to 9.74%
