Bonds Yield Rises to 15.32% on Tough Reforms
The secondary market for trading Nigerian bonds experienced moderate sell pressure which shifted the yield curve forward as the country embarked on tough policy reforms.
At the close of the session, benchmark yield increased to 15.32%, fixed interest securities traders said in their separate notes.
MarketForces Africa gathered from Broadstreet that a slew of fixed interest income investors sold ahead of an expected increase in benchmark interest, and inflation reports.
Naira assets price down also occurred in the equities market due to sustained negative perception as authorities continue to scramble to improve key macroeconomic indicators.
Reacting to a new risk-off sentiment propelled by the apex bank FX liquidity booster policies, trading activities on FGN bonds had slight bearish results.
The average yield increased by 3bps to close at 15.32%. In its market update, Cordros Capital Limited said the average yield increased at the short (+11bps) end due to profit-taking activities on the MAR-2027 (+47bps) bond but closed flat at the mid and long segments.
In the latest FGN bond auction, the DMO offered N360 billion but raised N418.2 billion worth of instruments through re-openings of the 16.29% FGN MAR 2027, 14.55% FGN APR 2029, 14.70%FGN JUN 2033, 15.45% FGN JUN 2033, 15.45% FGN JUN 2038. The demand at this auction primarily reflects system liquidity triggered by FAAC allocation and coupon payments, according to Coronation Research. #Bonds Yield Rises to 15.32% on Tough Reforms#
