Selloffs Keep Yield on Nigerian Government Bonds Uptrend
Trading activities in the secondary market for Nigerian government bonds was relatively quiet, with the average yield increasing by 3bps to print at 19.34%, fixed income analysts said in a separate report.
Most trading activities in the local bond market concentrated on the Feb 2031 paper, AIICO Capital Limited told investors in a note.
Subdued yield has continued to trigger portfolio rebalancing amidst slowdown in local bond supply by the authority. Inflation rate spiked in September in contrast to expectation due to economic uncertainties and negative effects of fuel price increase.
The hot red inflation condition has now widened real return gap on naira assets as investors continue to earn negative yield on their investment.
Traders said yields increased at the short end (+11bps) due to selloffs on the APR-29 paper whose yield climbed by +117 basis points on the day.
On the mid-segment (-5bps), yields declined due to buying interest on the FEB-31 (-14ps) and MAY-33 (-13bps) papers, CardinalStone stated in its market update.
Investors have continued to digest yields, expectations on their respective investment portfolios amidst rising inflation rate and declining local bond supply. #Selloffs Keep Yield on Nigerian Government Bonds Uptrend
Global Growth Remains Unchanged at 3.2%, as Inflation Recedes- IMF
