Nigeria’s long-dated Eurobond yield has risen above 8 percent as higher US Treasury yields and persistent inflation concerns put pressure on longer-maturity debt in global markets.
The yield on Nigeria’s September 2051 Eurobond has climbed in recent weeks, reflecting the broader rise in long-term global bond yields as investors reassess the outlook for inflation and interest rates.
Victor Ogundijo, a fixed-income analyst at CardinalStone, said the recent increase was driven largely by movements in global benchmark yields rather than a significant deterioration in Nigeria’s sovereign risk.
“Long-end yields generally are weighed by the global macros,” he said.
He said the prolonged war in Iran was sustaining inflationary pressures, while uncertainty over the pace at which the US Federal Reserve can bring inflation back to target was feeding expectations of higher-for-longer interest rates.
