The Nigerian Eurobonds market displayed resilience in November, with yields continuing their decline despite a spike in domestic insecurity that drew pointed attention from the United States.
The average yield on all 13 existing FGN Eurobonds decreased by 69 basis points in a month to 7.59 percent today from 8.28 percent on the first trading day in November.
The average price of Nigerian Eurobonds has grown to $102.79 at the end of today, from $99 at the start of November.
“ The Eurobond market sustained its positive momentum, with average yields dropping, supported by solid demand across the curve. Notable yield compressions were seen on the FEB-2030 (-38bps), JAN-2031 (-35bps), and SEP-2038 (-37bps) instruments,” analysts at Meristem Securities said in its weekly report.
November saw a broader global trend of capital flowing back into emerging and frontier markets. According to analysts at CSL Stock, this is supported by improved global risk appetite and rising expectations of a potential U.S. Federal Reserve rate cut in December. This momentum strengthened mid-last week as confidence grew that the Fed could implement another cut before year-end.
Investor confidence was cemented by the successful new Eurobond issuance in early November. Nigeria successfully priced $2.35 billion in Eurobonds, which garnered an oversubscription of $13 billion, the largest-ever orderbook achieved by the country on improved macroeconomic indicators.
The Eurobond rallied, despite a significant surge in violent attacks, including mass kidnappings, that shook the nation’s fragile sense of security throughout November.
This insecurity was amplified by the renewed involvement of the U.S. earlier last month, when President Donald Trump said the U.S. military could deploy troops to Nigeria or carry out air strikes to stop what he called the killing of large numbers of Christians in the West African country.
The threat and the wave of abductions led to a governmental reaction. President Tinubu responded in late November by declaring a“nationwide security emergency and ordering the mass recruitment of an additional 50,000 police officers.
