Nigeria’s Eurobond yields surge above 10% amid global selloff, FX crisis

BY TEMITOPE ADEBAYO

Nigeria’s Eurobond yields have risen above 10 per cent, driven by persistent selloffs in the international capital markets.

Investors have been offloading their holdings in anticipation of an upcoming U.S. Federal Reserve rate cut, leading to increased risk aversion across both short and long-term bonds.

This surge in bond yields reflects broader concerns about Nigeria’s economic stability, especially as the country continues to grapple with a severe foreign exchange (FX) shortage.

The naira has plummeted to an all-time low, further exacerbating the country’s financial challenges.

On the global front, U.S. Treasury yields also edged higher as investors awaited crucial jobs data to gauge the health of the American economy.

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The yield on the 2-year Treasury rose by 0.9 basis points to 3.783 per cent, while the 10-year and 30-year Treasuries climbed by 1.5 and 1.2 basis points, respectively.

In Nigeria, the sovereign Eurobond market witnessed a pronounced selloff across all maturities, with yields rising by 10 basis points to an average of 10.01 per cent.

This uptick reflects growing investor unease as Nigeria navigates both global market shifts and domestic economic pressures.