Investors Cash Out in Nigerian Bonds Market after Rate Cut
Fixed interest securities investors booked profit on Nigerian government bonds in reaction to reduction in benchmark interest rate at the end of policy committee meeting on Tuesday.
Traders spotted selloffs activities at the short, and belly of the local bonds tenors as market analysts foresee potential reduction in spot rate ahead of Debt Management Office primary market auction.
The first rate cut in 2025, which mirrored U.S Federal Reserve policy decision, suggests the authorities might have final switched position to dovish stance to allow private sector driven economic growth.
In a commentary note, CardinalStone Securities Limited reported that yields in the bond space closed higher as market players sold off instruments at the short-end (+8bps), specifically the 2026s.
The market also witnessed some buying activities – but activity was concentrated at the short and mid segments of the curve, while the long end remained muted.
The soft but positive sentiment among market participants was spurred by these diverge reactions to decisions by central banks which saw reactions from the plain vanilla investors.
Traders noted that investors will continue to digest the MPC’s 50bps cut in the MPR to 27.00% till Sept primary market auction conclusion sets directions for portfolio adjustments.
The Mar-2026 yield rose by 89bps to 18.57%, whereas the Jul-2030 yield declined by 24bps to 16.19%. Overall, the average mid-yield inched up by 4bps to 16.52%.
In the short term, market analysts at AIICO Capital Limited said they expect investors’ positive interest on selected bills. # Investors Cash Out in Nigerian Bonds Market after Rate Cut Fidelity Bank Shareholders Wealth Rises by 125% Ahead of Next Capital Raise
