The Nigerian secondary bond market ended the week on an impressive bullish stretch, with the average benchmark yield settling at 15.57 per cent amid a surge in investor interest across government securities of varying maturities.

The week’s trading was marked by heightened activity, reflecting a renewed appetite for fixed-income instruments at a time when uncertainties persist across equities and other high-risk asset classes.

The fall in yields by 20 basis points underscored a broad shift toward safer assets as investors sought stability in the face of market volatility.

Analysts link the strengthened demand to improving fiscal signals from the federal government and the continuation of steady monetary policy, both of which have contributed to a more favourable environment for fixed-income investments.

Market participants are also increasingly drawn to the relative value offered by Nigerian sovereign bonds compared with other domestic and regional instruments.

The upbeat sentiment was mirrored in the external debt market, where Nigeria’s sovereign Eurobonds extended a streak of positive performance.

Average Eurobond yields dropped by 21 basis points to 7.77 per cent week-on-week, signalling renewed investor confidence in Nigeria’s external obligations.

This downward movement in yields suggests a growing willingness among investors to accept lower returns in exchange for what they view as stronger stability and safer exposure to Nigerian sovereign risk.

The trend is further supported by relatively calm global fixed-income conditions, which continue to encourage inflows into emerging-market debt.

Analysts at Cowry Asset Management said the outlook for both the local bond and Eurobond markets remains largely optimistic.

They anticipated that sustained investor participation, improving macroeconomic signals, and gradual fiscal consolidation would keep yields on a steady downward trajectory.

The forthcoming maturity of the November 2025 Eurobond is also expected to draw additional attention, potentially tightening yields further as demand intensifies.

For investors, the evolving landscape highlights the strategic importance of Nigerian fixed-income assets as a solid anchor within diversified portfolios, particularly for those seeking insulation from the turbulence observed in riskier asset classes.

Meanwhile, the naira weakened to N1,442.43 per dollar at the official market and N1,472 per dollar on the parallel market, extending a week of renewed pressure despite continued intervention efforts by the Central Bank of Nigeria.

The currency’s 0.41 per cent decline at the official window and sharper 1.49 per cent slide on the parallel market highlight persistent demand pressures and long-standing structural gaps that continue to shape Nigeria’s foreign exchange environment.

While the currency struggled, Nigeria’s external reserves offered a slight cushion, rising to $43.43 billion from $43.35 billion, representing a 0.18 per cent week-on-week increase.

The buildup was supported by steady crude oil earnings, improved non-oil inflows, and a resilient trade surplus, factors that have reinforced the CBN’s ability to step into the market and temper excessive volatility.

On the global stage, oil prices firmed as geopolitical tensions escalated. Renewed Ukrainian drone attacks on Russia’s strategic Novorossiysk export hub stoked fears of further supply disruptions, pushing WTI crude up by 2.71 per cent to $60.28 per barrel, while Brent crude advanced to $64.54 per barrel.

The latest strikes underscore Ukraine’s intensified focus on Russian refinery assets, with analysts warning that upcoming U.S. sanctions on Rosneft and Lukoil set to take effect on November 21 could deepen supply risks and inject fresh uncertainty into the oil market.

Looking ahead, the naira is expected to trade with a steadier tone, buoyed by firmer external reserves, consistent FX inflows, and a more orderly market structure.

Sentiment remains supported by Nigeria’s recent Eurobond issuance, which has eased supply concerns and helped anchor expectations for a narrower trading band in the near term.

Enhanced market liquidity is also likely to provide the local currency with additional support. Globally, a risk-off mood has driven demand for traditional safe-haven currencies such as the Japanese yen and Swiss franc, putting pressure on the U.S. dollar.