Nigeria’s Eurobonds market extended its bearish run in March, with yields rising sharply towards the end of the month as bond prices declined across maturities. Data from the Debt Management Office (DMO) show that the average yield on 11 Federal Government Eurobonds climbed to 7.47% as of March 27, up from about 7.18% recorded around March 6, 2026.

Analysts suggest this broad-based repricing signifies that investors are buying from original bondholders at a discount, emphasizing that more investors would be keen to subscribe to the bonds given the higher yield.

Yields on Nigerian Eurobonds rose moderately in early March but accelerated significantly by the final week, indicating a shift in investor sentiment. The increase was not isolated but spread across all maturities, pointing to a synchronized repricing of risk.

As of March 6, yield increases were relatively contained, mostly below 0.30 percentage points across instruments. By March 27, weekly yield increases had accelerated, ranging between 0.22 and 0.41 percentage points. This pattern suggests that investors are increasingly demanding higher compensation for holding Nigerian sovereign debt amid persistent global and domestic uncertainties.

The upward repricing of yields was evident across short-, medium-, and long-term Eurobonds, with more pronounced pressure on longer maturities. This indicates growing caution among investors, particularly regarding long-term exposure.

Short-term bonds such as the 2027 and 2028 maturities saw yields rise from around 5.9% to about 6.2%–6.4% between March 6 and March 27. Mid-tenor bonds (2030–2033) recorded stronger increases, with yields climbing from 6.5%–7.4% to approximately 6.8%–7.7%, with the 2032 bond posting the highest weekly jump of 0.41 percentage points.

Long-dated bonds (2038–2051) experienced the sharpest repricing, with yields rising from 7.9%–8.5% to as high as 8.7%, while the 2047 bond fell to N91.10, the lowest price across maturities. The 2049 bond, despite trading above par at N105.92, still saw yields increase to 8.7%, up from about 8.3%–8.4% earlier in the month.

Overall, the data highlights a clear divergence between early and late March performance, with long-term instruments bearing the brunt of investor risk aversion.

Analysts insist that the development is of advantage to the government because more investors would like to subscribe, given the robust yield.