US 30-year Treasury yields have hit a 20-year high, reaching 5.31% amid investor concerns over government spending and persistent inflation. This surge threatens the Nigerian capital market by incentivizing capital flight as foreign investors pivot toward safer, higher-yielding US assets.

The resulting pressure on the Naira increases the cost of servicing dollar-denominated debt and imports, forcing the Central Bank of Nigeria to consider tighter monetary policy. This environment, characterized by rising local borrowing costs and reduced foreign liquidity, creates a significant headwind for equity valuations on the Nigerian Exchange.