The average yield on Nigerian sovereign Eurobonds dropped by 9 basis points to 9.69% in the international debt market. The decline reflects robust investor demand spanning short, mid, and long-term maturities.
Notably, the JAN-31 and MAR-29 bonds attracted significant selective interest from fixed-income traders. Improved US-EU trade prospects fueled initial bullish momentum, as President Donald Trump postponed 50% tariffs on EU goods.
A May rebound in US consumer confidence further bolstered positive investor sentiment toward Nigerian Eurobonds.
However, concerns over OPEC+’s aggressive production hikes threaten an oil oversupply that could persist through 2026, curbing some gains.
Despite these headwinds, Nigeria’s Eurobond yields tightened, showcasing resilience in the global fixed-income landscape. Volatility in the global fixed-income market intensified due to shifting US tariff policies, as highlighted by CardinalStone Partners Limited.
US Treasury yields dipped initially following reciprocal tariff announcements but rebounded after a 90-day tariff pause was enacted for most nations, excluding China.
Concurrently, the US economy shrank by 0.3% in Q1 2025, driven by surging imports and slashed government spending. African local credit markets sustained bullish momentum in April, with the AFMI Bloomberg African Bond Index (25.0% capped) climbing 1.2% month-on-month.
Most African bond markets posted gains, though Botswana trailed due to rising investor risk aversion. Botswana’s underperformance stemmed from a weakening fiscal position, shrinking reserves, and Moody’s downgrade of its credit outlook from stable to negative.