Morgan Stanley has retracted its bullish stance on Nigeria bonds, claiming they have become too expensive after rallying on the actions of newly elected president Bola Tinubu. Tinubu’s measures, including removing a costly fuel subsidy and overhauling a dysfunctional currency system, initially earned investor approval, surging 5% last week, while its risk premium narrowed at a faster pace than other similarly rated high-yield debt. The bank is now neutral on the debt and stated it prefers Angola to Nigeria in terms of long-term yield.