Nigerian Bonds Yield Falls to 15.86% Ahead of Auction
The Nigerian government bond benchmark yield fell by 10 basis points week on week to 15.86% in the secondary market as investors ramped up naira assets. Buy sentiment dominated the curve across all five trading sessions.
Trading activity remained robust, reflecting improved sentiment and sustained appetite for fixed-income instruments amid persistent uncertainties in other asset classes.
Consequently, the broad-based demand exerted mild downward pressure on yields, driving the average yield lower by 10 basis points to 15.86% for the week.
Average yields declined w/w across the short -, mid -, and long -dated maturities by 8bps, 15bps, and 7bps, respectively, according to Afrinvest Securities Limited.
On average, the market anchor rate fell 10 bps week on week to 15.86%, the investment firm said in its update. Fixed income market analysts said this performance was driven by strategic positioning by portfolio managers ahead of an anticipated interest rate cut in November.
The market expects the Central Bank of Nigeria monetary policy committee to axe the benchmark interest rate on the back of sustained disinflation outcomes. Expectations across the Broadstreet is that the discount rates on bonds and other fixed interest securities will decline.
The Nigerian secondary bond market closed the week on a bullish note, buoyed by strong investor demand across most tenor segments. Trading activity remained robust, reflecting improved sentiment and sustained appetite for fixed-income instruments amid persistent uncertainties in other asset classes.
Consequently, the broad-based demand exerted mild downward pressure on yields, driving the average yield lower by 10 basis points to 15.86% for the week.
The Debt Management Office (DMO) is scheduled to reopen two sovereign issues – FGN AUG 2030 and FGN JUN 2032 – with offer sizes expected in the range of ₦130 billion each today.
Analysts expect the auction yield swing to guide performance in the secondary market segment in the week. # Nigerian Bonds Yield Falls to 15.86% Ahead of Auction; Money Market Rates Fall as N1.5tn FAAC Inflow Boosts Liquidity
