June 4, 2025/CSL Research

Key Takeaways

• Global markets remain volatile amid uncertainty over US trade policy.
• Lingering global demand worries and OPEC+ output hike expected to weigh on Brent crude oil prices.
• African sovereign markets rallied in May on improved sentiment, but face renewed headwinds from US-China trade tensions.
• Local secondary bond market rebounds in May as bullish sentiment returns.

Global markets witnessed a short-term relief in May, largely driven by a 90-day trade truce between the US and China. This temporary easing of trade tensions significantly improved investor sentiment, particularly in global equity markets, although reactions in the global fixed income space were more mixed.

Meanwhile, crude oil prices have declined by around US$10 per barrel year-to-date (YTD), with the risks biased to the downside on account of weaker global demand and rising supply pressures. African sovereign Eurobond markets extended their bullish trend in May, supported by strong and broad-based gains across key economies, including Nigeria, Ghana, and Egypt.

In Nigeria’s local bond market, bullish sentiment returned in May, reversing the weakness observed in April. In our view, Nigeria’s local fixed income market continues to offer an attractive carry trade opportunity for foreign investors, given current yield levels and the outlook for the exchange rate.​​​​​​​​

​

To read the full report, click on the link below

​CSL Macro and Fixed Income Report – African sovereigns.pdf