Nigeria’s dollar-denominated borrowing costs fell to the lowest in more than nine weeks on expectations that central banks globally will provide more stimulus measures to boost their economies.
Yields on the West African nation’s Eurobonds due January 2021 dropped 18 basis points to 4.04 percent by 2:50 p.m. in London, where they are listed, the lowest since Jan. 31, according to data compiled by Bloomberg.
“The market now expects the quantitative easing program in the U.S. to go on for longer and probably for rates to remain low for a more meaningful period,” Samir Gadio, an emerging- markets strategist at Standard Bank Group Ltd., said by phone today from London. “That should provide support for the Eurobond asset class.”
Yields on Ghana’s $750 million Eurobonds, due October 2017, slipped 8 basis points to 4.76 percent. Gabon’s $1 billion debt due December 2017 retreated 11 basis points to 3.12 percent.
U.S. 10-year bond yields traded below 2 percent for the third straight week as Federal Reserve Chairman Ben S. Bernanke signaled in a speech yesterday that there was room for improvement in the economy, spurring bets the central bank will maintain asset purchases. The Bank of Japan last week announced stimulus measures.
The naira slipped less than 0.1 percent to 157.65 a dollar in Lagos, the commercial capital. Yields on the nation’s domestic debt due 2022 fell seven basis points to 10.84 percent, according to yesterday’s prices on the Financial Markets Dealers Association website.
Ghana’s cedi rose 0.1 percent to 1.9425 per dollar in Accra, the capital.
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