Nigeria Eurobonds Rebound as Investor Confidence Grows

Nigeria’s sovereign Eurobonds strengthened last week, reversing earlier losses as investors returned to the country’s dollar-denominated debt amid improving sentiment. Average yields on Nigerian Eurobonds declined by four basis points during the week to 6.91% from 6.95%, indicating stronger demand following a selloff the previous week when yields rose by nine basis points to 6.96%.

The earlier decline was attributed to heightened geopolitical tensions in the Middle East and expectations of prolonged high global interest rates, prompting a reduction in exposure to emerging market debt. Trading activity focused on bonds maturing on 28 November 2027, 23 February 2038, and 28 September 2051, with yields on these instruments falling by eight, five, and four basis points, respectively.

Meristem Securities noted the reversal of the previous week’s bearish trend, while CSL Stockbrokers linked the improved performance to growing confidence in Nigeria’s macroeconomic outlook, driven by firm crude oil prices and sustained investor appetite for higher-yielding emerging market debt.