Nigeria’s Sovereign Eurobond yield rises to 9.70%

Business a.m.

Nigeria’s US dollar bond yield climbed to 9.70 percent as bearish sentiment nudged the yield curve despite a mixed outing that was recorded in the international capital market due to the U.S. election.

The mood shifted in the market from the previous trend. In their separate notes, fixed-income traders said they saw mixed sentiment across the short, mid, and long ends of the yield curve, and this led to muted activity in Nigeria’s sovereign Eurobonds market.

The US elections influenced the market to close on a bearish note. Trading volumes were low as participants shifted their focus to the polls. Offers were pronounced across the curve, with the mid and long ends taking most of the hit, save for the 25 and 47 maturities, which saw mild buying interest, TrustBanc Capital Limited said in a note.

Similar bearish sentiment was evident across the SSA curve, including Ghana, Angola, and Egypt.  Traders anticipate cautious trading as investors position for early signals from the closely contested U.S. election, which could impact market dynamics and investor sentiment.

Among African bonds, only a few Nigerian corporates saw slight demand, while Nigeria’s sovereign, Angola, and Egypt experienced lower prices. Overall, the average mid-yield for Nigerian bonds increased by 10 bps, closing at 9.70 per cent.

In the foreign exchange market, the naira appreciated by 0.33 per cent, closing at ₦1,671.32 per dollar at the official market. In the parallel market, the naira closed at N1,710 to the dollar.