Nigerian Bonds Yield Tracks Below 16% Amidst Cautious Action
The average yield on Federal Government of Nigeria (FGN) bonds stayed below 16% in the secondary market amidst mixed sentiment over fixed interest securities assets.
The bond market’s trading temperature has been affected by the authority interest rate cut, which sparked a move into risky assets.
Bargain hunting has been limited despite ample liquidity in the financial system, reflecting a cautious disposition to local debt papers in the secondary market.
The choice given to pension fund administrators about portfolio structure could shift attention, and hence trading activities on low return papers.
Ahead of inflation release this week, the federal government bond market traded quietly with minimal buying activity observed on the short end of the curve (-1bp); however, average yield across the curve remained unchanged at 15.98%.
Elsewhere, traders reported that the Treasury bills market traded bullish, particularly at the short (-2bps) and mid (-2bps) segments of the curve. Consequently, average yield declined marginally by 1bp to settle at 17.39%.
Across the benchmark curve, the Nigerian government bonds average yield expanded at the mid (+1bp) segment due to profit taking activities on the JUL-2034 (+1bp) bond, but closed flat at the short and long ends.
Fixed interest income investors continued to bet on the naira assets with cautious sentiment in sovereign local debt. Trading activity was largely limited to short- to mid-tenor papers.
The Debt Management Office (DMO) released the Q4 2025 bond issuance calendar, which includes re-openings of the AUG 2030 and JAN 2032 instruments.
Overall, the average benchmark yield remained unchanged at 15.98%. Analysts said they expect investors’ sentiment to remain the same in the near term. #Nigerian Bonds Yield Tracks Below 16% Amidst Cautious Action CBN to Auction N570 billion Worth of Nigerian Treasury Bills
