The Nigerian Eurobond market weakened as yields rose by 10 basis points to 8.27% at the international market, reflecting diminished investor confidence amid ongoing market uncertainties.

The average yield on US dollar-priced sovereign bonds has been uptrend in the last few weeks as the market anticipates Nigeria’s repayment of $1.1 billion Eurobonds that will expire in Nov.

Fixed-income market analysts anticipate Nigeria’s borrowing costs at the international capital market to reduce due to a better macroeconomic indicator outlook and ratings upgrades.

While Nigeria’s $1.1 billion eurobond is expected to expire next month, the authority has a plan to raise an additional $2.3 billion from the market in the fourth quarter. 

The market saw negative trading actions across African issuers as the drive for safe haven assets heated up in anticipation of a US Federal Reserve interest rate cut.

MarketForces Africa, a group of researchers, said market sentiment continues to shake over a prolonged U.S. government shutdown, which could further dampen economic activity and crude demand, amplifying downside pressure.

Trading actions showed that the African Eurobond market was bearish as investor sentiment remained risk-averse amidst declining oil prices.  Oil rich African issuers’ US dollar bonds were sold down as global commodity prices fluctuated.

Gold buying is taking global market attention, and the price per ounze has crossed $4000 after previous retracement. 

Eurobond investors riskoff persisted despite comments from Fed Chair Jerome Powell suggesting a potential openness to further rate cuts in the face of tariff induced inflationary pressures.

Trading activity was slightly weaker last week, with average yields rising by 8bps week on week to 8.06 per cent following cautious global sentiment and profit-taking.