Nigeria’s Eurobond yields edged higher last week as investors reassessed risk across emerging markets following renewed signals that US interest rates could remain elevated for longer.
The move reflects growing pressure on frontier-market debt as the Federal Reserve’s hawkish posture limits the scope for global monetary easing.
25%, signaling a broader global pivot toward tighter policy.
The repricing comes as traders for the first time in the current cycle are pricing in a Federal Reserve rate hike as soon as December, according to the Fed funds futures market.
This shift follows a series of unexpectedly high inflation readings that have forced markets to abandon earlier bets on a rapid return to lower rates.
The European Central Bank has also initiated its first interest-rate tightening cycle since 2023, lifting the deposit facility rate by a quarter point to 2.25%, signaling a broader global pivot toward tighter policy.
For Nigeria, the rising cost of capital exacerbates existing fiscal pressures.