Nigeria’s Eurobond Yield Spikes to 12.06%

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Nigeria's Eurobond Yield Spikes to 12.06%
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Nigeria’s Eurobond Yield Spikes to 12.06%

Selloffs on Nigeria’s Eurobond in the international debt capital market hiked the average yield to 12.06% while proceeding or trading activities in the fixed income market ended on a mixed note.

As uncertainty over 2023 presidential election eased, the local bond market traded sideways with a pocket of trading seen on very long-dated debt instruments.

Analysts told MarketForces Africa that investors will see yield repricing materialising in the second quarter as the government make good its fiscal deficit position through local borrowings. 

Today, the prices of FGN bonds rose for the majority of the maturities, according to investment banking firm, Cowry Asset Management Limited.

Consequently, the average secondary market yield contracted to 13.21%. The 10-year and 15-year FGN Bonds yields were richer by 11 basis points and 3 basis points, respectively, Cowry Asset Managers told clients via email today.

On account of higher demand for these FGN Bonds, their corresponding yields contracted to 12.93% (from 13.04%) and 14.68% (from 14.71%), respectively.

Fund/Asset Managers reported that the 20-year FGN note was cheaper by 3 basis points, while its corresponding yield expanded to 15.75% (from 15.72%). Notably, the 30-year bond yield remained steady 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%. Naira Steadies as Banks Issue Update on FX Purchase

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