Strong Yield Attract Investors into Nigerian Bond Market
Amidst elevated yield in the debt market, there was an increase in demand for Nigerian government bond in the secondary market on signal that supply side has become tight.
Buying Interest, however, dragged the average yield downward amidst slowdown in inflation rate and expectation that the monetary authority is more likely to keep rates tight at its next meeting.
Across the benchmark curve, the average yield expanded slightly at the short (+1bp) end following profit-taking activities in the APR-2029 (+3bps) bond.
On the other side, the yield curve declined at the mid (-34bps) and long (-7bps) segments due to investors interests in the JUN-2033 (-119bps) and APR-2049 (-45bps) bonds, respectively
Fixed income analysts at CardinalStone Limited stated that investors interests in the bond space were skewed to the mid-segment (-40bps) and the long-end (-7bps) of the curve.
As a result, the prices of local bond trading in the over-the-counter market increase, and the average yield declined by 14 basis points on the day to 19.24%.
In the Nigerian sovereign Eurobonds market, upbeat investor sentiment across the yield curve led to a 0.05% decline in the average yield, bringing it to 9.81%, Cowry Asset Limited told investors in a note. #Strong Yield Attract Investors into Nigerian Bond Market
