Nigeria’s Eurobond yields edged higher last week as investors reassessed risk across emerging markets following renewed signals that US interest rates could remain elevated for longer, increasing pressure on frontier-market debt including Nigeria’s.
According to Meristem Securities, average yields on Nigerian Eurobonds rose by 7 basis points to 6.93 percent from 6.86 percent in the previous week, reflecting broad-based selloffs across tracked instruments.
The investment firm attributed the movement to the US Federal Reserve’s decision to maintain a “higher-for-longer” policy stance, which strengthened demand for safer assets at the expense of riskier emerging-market securities.
The development comes as global investors continue to monitor the outlook for US interest rates, with expectations of prolonged policy tightness raising returns on dollar-denominated assets and reducing the attractiveness of frontier-market debt.
Meristem also noted that easing geopolitical tensions between the United States and Iran contributed to softer oil prices during the period, dampening sentiment
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