Riskoff Sentiments Push Nigerian Bond Yield to 19.76%
The average yield on Federal Government of Nigeria (FGN) bond rose in the secondary market due to riskoff sentiment triggered by uncertainties in the economy. In the secondary market, the average yields expanded by 5 basis points to settle at about 19.76%
Bondholders took profit across the curve ahead of national #Endbadgovernance protest. Traders said FGN bond market settled bearish despite early mixed interests on selected papers, including the 2031 and 2033 papers.
Based on trading pattern, the average mid-yield increased as investors took profit on the naira assets. Traders said the average yield was flat at the short and mid segments due to thin trading.
However, yield curve advanced at the long end, gaining 11 basis points, due to profit-taking activities on the APR-2049 bond in the secondary market.
The APR-49 instrument was the poorest performer, experiencing a yield increase of 50 basis points, according market update from Cowry Asset Limited to investors.
In Nigeria’s sovereign Eurobonds market, a bearish sentiment prevailed across the short, mid, and long segments of the yield curve, resulting in a 0.04% rise in the average yield to 10.19%.
In the money market, the Nigerian interbank offered rate declined by 18bps to close at 25.96% as banks with liquidity sought lower rates on Wednesday.
Key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) concluded at 25.39% and 25.83%, respectively, according to investment banking firms.
Meanwhile, in the Nigerian Interbank Treasury Bills Tue Yield (NITTY) space, rates across all tenor buckets showed upward movements, reflecting buy interest from investors.
As a result, the secondary market for Nigerian Treasury bills displayed a positive trend, resulting in a marginal decline in the average yield. #Riskoff Sentiments Push Nigerian Bond Yield to 19.80% NASS Amends CBN Act to Increase Ways And Means Loans to FG
