Nigeria’s sovereign Eurobonds extended their recovery last week as renewed investor demand pushed yields lower, signalling improving sentiment towards the country’s credit despite persistent global uncertainties. Falling yields indicate rising bond prices as investors increased their holdings of the country’s dollar-denominated debt.
According to Meristem Securities, average yields on Nigerian Eurobonds declined by 4 basis points to 6.95 percent from 6.91 percent in the previous week, reflecting renewed investor appetite for Nigerian sovereign credit following a recent uptick in yields.
The rebound followed a weaker outing the previous week when average yields climbed nine basis points to 6.96 percent after renewed geopolitical tensions in the Middle East and expectations of higher-for-longer global interest rates triggered a selloff across emerging market debt.
According to Meristem, demand during the week was concentrated on the 28-November-2027, 23-February-2038, and 28-September-2051 sovereign Eurobonds, with yields on the three maturities declining by eight, five,
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