LAGOS, Mar 31 – Nigeria’s Eurobonds extended their decline in March, with yields rising steadily and bond prices weakening across the curve as investors adjusted positions in the secondary market.
Data from the Debt Management Office show the average yield on 11 Federal Government Eurobonds increased to 7.47% as of March 27, up from about 7.18% earlier in the month. The shift became more pronounced in the final week, with weekly yield movements ranging between 0.22 and 0.41 percentage points, compared to milder changes at the start of March.
The repricing was broad-based, affecting short, medium, and long-term instruments. Short-dated bonds such as the 2027 and 2028 maturities saw yields edge up from around 5.9% to between 6.2% and 6.4%. Mid-tenor bonds maturing between 2030 and 2033 recorded stronger increases, with yields rising to as high as 7.7%, while the 2032 bond posted the sharpest weekly jump.
Long-dated securities bore the brunt of the selloff. Yields on bonds maturing between 2038 and 2051 climbed to about 8.7%, with the 2047 instrument dropping to N91.10, the lowest price across the curve. The 2049 bond, though still trading above par at N105.92, also saw yields rise to 8.7%.
Market participants say the movement reflects investors exiting positions at discounted prices, allowing new buyers to lock in higher returns.
Analysts note that while this does not alter the government’s existing debt obligations, it could influence future borrowing costs if Nigeria returns to the Eurobond market.
