Nigeria’s 30-Year Bond Yield Rises to 14.37%
In contrast to the current development in the Treasury bills market, the Federal Government of Nigeria (FGN) bonds of different classes faced sell pressures in the secondary market ahead of large borrowing plans to finance the 2023 budget deficit.
While prices of government bonds declined, yield adjusted upward in stark contrast to sustained decline in return on the treasury bills market. According to traders, FGN bonds remained relatively flat for most maturities monitored but with a bearish bias. The market sees the average secondary market yield rising by 5 basis points to 12.76%.
Specifically, the yield on 30-year debt increased by 294 basis points or 2.94% to 14.57%, Cowry Asset Management told clients in an email. Meanwhile, the yields on the 10- year, 15-year, and 20-year bonds stayed steady at 12.59%, 13.50%, and 14.77%, respectively, the investment firm said.
Elsewhere, the value of the FGN Eurobond increased for the bulk of the maturities tracked amid sustained bullish sentiment, according to analysts at Cowry Asset Management. Consequently, the average secondary market yield declined by 4 basis points to 10.95%.
Across the benchmark curve, Cordros Capital told clients that the average yield contracted at the short (-1bp) end following investors that have fined-tuned their portfolios strategy ‘demand for the APR-2023 (-48bps) bond.
However, bond yields expanded at the long (+15bps) end due to selloffs on the MAR-2050 (+42bps) bond. On the contrary, the average yield was flat at the mid-segment, according to traders’ notes. # Nigeria’s 30-Year Bond Yield Rises to 14.37%
