The Business NG - June 23, 2024

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Nigeria's Eurobonds are struggling to gain traction in the international debt market, following a reaffirmation of the country's low credit rating by Moody's. The global rating agency maintained Nigeria's credit rating at Caa1, citing elevated risks from high and rising inflation, as well as an uncertain fiscal outlook.

The bearish sentiment towards Nigeria's Eurobonds has led to a rise in yields, with the average yield increasing by three basis points to 10.27%. This reversal in trend has seen yields surpass the 10% mark, indicating a decrease in investor confidence.

The global bond market is also experiencing a bearish trend, with yields rising in the US and Canada. The yield on the US 10-year Treasury note has rebounded to 4.25%, while the Canadian 10-year government bond yield has risen to 3.37%.

Despite ongoing reforms aimed at boosting foreign portfolio investors' confidence, the demand for Nigerian Eurobonds remains weak. The country's reliance on a single revenue source and political risks are also weighing on investor sentiment.