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Nigeria Bonds Dumped at Fastest Pace in 3 Months After Downgrade

  • Moody’s cuts Africa’s biggest economy further into junk
  • Yields on dollar securities jump by the most since October
Taxi vans in heavy traffic on Nnamdi Azikwe Street by Idumota market in Lagos, Nigeria.

Taxi vans in heavy traffic on Nnamdi Azikwe Street by Idumota market in Lagos, Nigeria.

Photographer: Adetona Omokanye/Bloomberg

Nigeria’s sovereign-risk premium jumped the most in three months on Monday after Moody’s Investors Service downgraded the country deeper into junk.

The extra yield investors demand to own the West African country’s dollar debt rather than Treasuries widened 49 basis points to 780, according to JPMorgan Chase & Co. data. The rate on the nation’s 2032 bonds jumped 56 basis points to 12%, also the most since October. Forward contracts on the currency traded 28% weaker than the official rate on the one-year tenor.