Benchmark Yield on Nigeria’s Bonds Steady at 16.73%
Still higher than the headline inflation of 14.45%, the benchmark yield on Nigerian government bonds steadied at 16.73% as trading activities softened in the secondary market on Thursday.
The market sentiment is influenced by expectations about increasing bond supply in the first quarter and re-rate repricing signals. Inflation is descending, but the monetary authority has continued to raise the spot rate on Treasury bill papers.
The Debt Management Office had also pushed marginal rates on bonds upward at the last auction in 2025 despite clear disinflation signals.
There were initial sell pressure that lifted yield upward during the midweek, but market temperature normalised on Thursday amidst uncertainties in the macroeconomic environment.
With stable trading action, the average yields hold steady at 16.73%, reflecting measured and cautious sentiment among local investors toward domestic fixed-income securities.
On the short end, bonds such as the 22-Jan-2026 and 20-Mar-2026 maintained stability, closing flat at 16.14% and 16.73%, respectively, according to AIICO Capital Limited.
Fixed income market analysts noted that the 17-Mar-2027 and 20-Mar-2027 papers also ended unchanged. Also, the mid- to long-dated maturities, the market exhibited a similarly quiet stance, with the 28-Nov-2028, 17-Apr-2029, and 25-Jun-2032 FGN bonds all holding steady at previous levels.
Other tenors, including 21-Feb-2031, 15-May-2033, and 21-Jun-2033, likewise recorded no yield changes, reflecting a lack of significant buying or selling pressure.
Consequently, the average benchmark yield remained unchanged at 16.73%, signalling a largely inactive trading session with minimal directional bias across the curve. The market expects demand and supply dynamics to continue driving yield movements in the domestic bond market. Naira Drops to N1,419 Amidst Broad Stability Projection
