As investors’ demand rose amid strong economic development in the third quarter of 2024, the benchmark yield on Nigeria’s government Eurobond decreased on the global market. Because of the high returns and the anticipation that US Fed rates would lower expectations, foreign portfolio investors raised their bets on Nigeria’s US dollar bonds.
In October, investors sought to rebalance their portfolios, which resulted in selloffs of the nation’s US dollar bonds as the inflation rate increased. It is anticipated that hot money would pour into the African Eurobond market as certain players in the offshore debt market look for a safe haven.
In Nigeria’s sovereign Eurobonds market on Monday, buying pressure across the short, mid, and long segments of the yield curve led to a 0.08% decrease in the average yield, bringing it to 9.62%, Cowry Asset Limited told investors in a note.
The bulls regained control, opening the week on a positive note with modest buying momentum across the curve. Fixed income market analysts said a similar bullish sentiment was observed across the curve in Egypt, Ghana, and Angola papers.
The National Bureau of Statistics (NBS) said in its quarterly report that Nigeria’s economy maintained its positive growth trajectory in the third quarter of 2024, growing by 3.46% year on year from 3.19% in the second quarter of 2024
The non-oil industry, which reflects significant advances in the services sub-sector, was the main driver of the growth rate. Increased buying interest is anticipated across the board, especially in Nigeria, Angola, and Egypt, as the Eurobonds market continues to show strong activity.
