FGN Bond Yield Prints at 15.89% Ahead of Inflation Figure
Trading in Federal Government of Nigeria (FGN) bonds softened in the secondary market due to tight investor sentiment ahead of inflation data, amid mixed expectations.
Hence, the secondary market for the local debt papers ended the first session in the new week on a quiet note, keeping the average yield at 15.89%.
This stability reflects sustained confidence among domestic investors and a cautious appetite for naira-denominated sovereign debt, according to Broadstreet fixed income market analysts.
Investors were selective in their purchases, particularly at the shorter end of the yield curve. Notable movements included declines of 8 and 9 basis points for the Mar-27 bonds, a decrease of 2 basis points for the Mar-28 bonds, and a drop of 1 basis point for the Nov-28 bonds.
Conversely, the Aug-2030 FGN bonds experienced selling pressure, increasing by 10 basis points. Overall, trading activity across other maturities was relatively quiet.
The National Bureau of Statistics is expected to release March inflation figures this week, with projections showing the Middle East war will have a negative impact on the consumer price index.
Headline inflation printed lower at 15.06% in February as food index eased, but a higher petrol price, in addition to a surge in food items prices is expected to halt disinflation in Q2 GTCO Gains as 2025 Dividend, Payout Ratio Attract Investors
