Influential Article Review - Evaluation of Spillover Effects on Nigeria's Sovereign Bond Yields

Abstract

This paper examines finance. We present insights from a highly influential paper. Here are the highlights from this paper: This study examines the spillover effects of U.S. monetary policy normalization on Nigeria 10-Year Treasury bond yield between 2011 and 2017, using the vector error correction model approach. Our results reveal that domestic factors, such as exchange rate and inflation, rather than the U.S. 10-Year sovereign bond yield, are the key drivers of Nigeria 10-Year bond yield. Additionally, the spillover effect from the U.S. monetary policy was amplified by oil price shocks and changes in Nigeria’s monetary policy rates. Our counterfactual analysis confirms the findings. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.