The Nigerian Sovereign Eurobond market noticed a variety of purchase orders, main the common yields to drop to six.95 p.c final week, the bottom in 4 years, pushed by rising oil costs and potential U.S. assaults on Iran.
“The Nigerian Sovereign Eurobond market traded largely bullish, supported by improved world danger sentiment, rising crude oil costs, and sustained demand for higher-yielding rising market belongings. The typical benchmark yield declined by six foundation factors week-on-week to six.95 p.c,” analysts at CSL mentioned.
In addition they talked about that a mixture of beneficial home and world macroeconomic elements helps the rising demand for rising markets, together with Nigeria’s Eurobonds.
Decrease home inflation determine at 15.10 p.c in January and rising world crude oil costs, pushed partly by heightened tensions within the Center East, contributed to improved investor sentiment.
For Nigeria, Africa’s prime oil producer, the additional rally in crude affords a welcome raise for international change (FX) inflows and monetary revenues.
Equally, analysts at AIICO mentioned the rally was pushed by combined macroeconomic information, oil value volatility and potential U.S. assaults on Iran.
Tensions have been excessive final week, and regardless of talks in Oman, either side stay at an deadlock. Donald Trump’s, U.S. President stress on the Iranian regime escalated after a brutal crackdown on anti-government protestors throughout the nation final month.
International benchmark Brent oil value was up $2.13, to settle at $69.46 a barrel initially of the week, however ended the week at $67.75.
Oil costs are due to this fact prone to keep risky, with sharp two-way swings pushed by diplomatic indicators moderately than pure demand-supply fundamentals.
In the meantime, Citi mentioned if disruptions to Russian provide hold Brent in a $65 to $70 per barrel vary within the coming months, OPEC+ is prone to reply by growing output from spare capability.
The market kicked off the week on a optimistic notice, on the again of improved oil costs as the common benchmark yield dropped by three foundation factors. By midweek, profit-taking on chosen maturities led to a yield uptick because the traders reacted to the U.S. January unemployment fee, which got here decrease at 4.3 p.c, in comparison with the December fee of 4.4 p.c, signalling a cautious Federal Reserve Coverage stance.
In direction of the top of the week, common yield dropped as traders reacted to the combined U.S. jobless declare information.
By the top of the week, the market stayed bullish as traders reacted to the U.S. CPI January information of two.4 p.c, decrease than the estimate of two.5 p.c and a couple of.7 p.c in December 2025.
