The Federal Government of Nigeria’s Eurobonds market showed varied performance during the week ending February 28, 2025, with minor price fluctuations and corresponding changes in yields. Key bonds saw slight shifts in their prices, signaling investor caution amid ongoing market adjustments. Here’s a detailed breakdown of the market activity:
Thank you for reading this post, don't forget to subscribe!• 7.625% 21-NOV-2025 Bond: The bond experienced a modest decline in price, falling to N100.47 from N100.50, resulting in a slight uptick in yield to 6.9%. The price change was minimal at -0.03, indicating steady demand from investors in the short-term horizon.
• 6.50% NOV 28, 2027 Bond: This bond saw a price increase, rising to N97.45 from N97.36, and a decrease in its yield to 7.5%. The 0.09 rise in price suggests growing market confidence, with investors showing preference for mid-term maturity bonds despite yield changes.
• 6.125% SEP 28, 2028 Bond: Similarly, the 2028 Eurobond saw a modest price rise, moving up to N93.36 from N93.34. The yield remained at 8.3%, reflecting a cautious but stable investor sentiment for medium-term bonds.
• 8.375% MAR 24, 2029 Bond: This bond remained relatively stable, with a small price increase to N99.45 from N99.43. The yield held firm at 8.5%, showing minimal movement over the course of the week.
• 7.143% FEB 23, 2030 Bond: The bond experienced a small decline in price, dropping to N93.46 from N93.55. Yield increased slightly to 8.8%, reflecting a cautious stance in the market despite the price change.
• 8.747% JAN 21, 2031 Bond: This bond also saw a slight decrease in price, edging down to N99.18 from N99.21, while the yield stayed steady at 8.9%. The market seemed relatively stable for longer-term bonds, though some price retracement was evident.
• 7.875% 16-FEB-2032 Bond: The 2032 bond saw a more noticeable price drop, falling to N93.05 from N93.27, with its yield rising to 9.3%. The negative price movement signaled more cautious sentiment, with the bond’s yield reflecting higher risk perceptions.
• 7.375% SEP 28, 2033 Bond: This bond faced a larger price drop, falling to N88.26 from N88.58, with its yield increasing to 9.4%. The price drop, coupled with the rising yield, points to the growing risk aversion in the market for longer-duration bonds.
• 7.696% FEB 23, 2038 Bond: The price of this bond decreased to N84.57 from N84.74, with a slight increase in its yield to 9.8%. The extended duration of this bond continues to pose higher risk for investors, reflecting in its declining price and increasing yield.
• 7.625% NOV 28, 2047 Bond: The 2047 Eurobond witnessed a price drop to N79.61 from N79.82, with its yield climbing to 9.9%. Long-term bonds, particularly those maturing in 20 years or more, continue to see investor caution amid uncertain market conditions.
• 9.248% JAN 21, 2049 Bond: This bond saw a smaller price decrease, dropping to N93.75 from N93.85, with its yield increasing slightly to 9.9%. The bond remains relatively attractive to long-term investors despite minor price adjustments.
• 8.25% SEP 28, 2051 Bond: Similarly, this bond experienced a slight decline in price to N83.52 from N83.69, with a small uptick in yield to 10.0%. The bond continues to show price volatility, but the yield suggests it remains an attractive option for yield-seeking investors.
Overall, the Federal Government of Nigeria’s Eurobonds market showed a mix of price declines and marginal increases in yield across various maturities. Long-term bonds, particularly those with maturities beyond 20 years, experienced more pronounced declines in price, which contributed to a rise in yields, signaling higher market risk.
Investors are closely monitoring these developments, balancing the risk of longer-duration bonds against the opportunity for higher yields.
