Nigeria’s Eurobond yields fell the most in almost nine months after reports showed the economy accelerated in the fourth quarter and foreign-currency reserves rose.
Yields on the $500 million of debt due January 2021 dropped 17 basis points, or 0.17 percentage point, to 4.144 percent as of 11:52 a.m. in London, the biggest decline since June 6 on a closing basis and the lowest since Feb. 6, according to data compiled by Bloomberg. The naira retreated less than 0.1 percent to 157.45 a dollar.
Nigeria’s economy grew by 6.99 percent year-on-year in the fourth quarter, compared with 6.48 percent in the third, the Abuja-based National Bureau of Statistics said late yesterday. The foreign-currency reserves of Africa’s most populous country rose to $47.385 billion, the highest level since at least 2010, the Central Bank of Nigeria in Abuja said yesterday. The reserves have increased 7 percent this year.
“The current position of Nigeria’s reserves and trend in gross domestic product adds to the positive investment outlook of the economy,” Kunle Ezun, a Lagos-based analyst at Ecobank Transnational Inc., said by phone.
The economy of Africa’s largest oil producer will probably expand 6.8 percent this year, the National Bureau of Statistics said Feb. 18.
The nation’s inflation rate fell to 9 percent in January from 12 percent in December, according to the statistics office.
The yield on the country’s 16.39 percent domestic bonds due January 2022 declined two basis points to 10.60 percent in the secondary market, according to yesterday’s data compiled on the Financial Markets Dealers Association website.
Ghana’s cedi retreated 0.1 percent to 1.9195 per dollar in Accra, the capital.
To contact the reporter on this story: Emele Onu in Lagos at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org