Benchmark Yield on Nigerian Bonds Rises to 18.70%

Benchmark Yield on Nigerian Bonds Rises to 18.70%

Benchmark yield on Nigerian government bonds in the secondary market rose to 18.70% after Debt Management Office (DMO) auction sales. Trading activities were relatively quiet at the beginning of the week due to attention shifting N150 billion worth of local bonds for subscription at the main market.

In its market note, CardinalStone analysts said they observed sell side activities on the short end of the curve, and this pushed the associated yield higher by +13 bps. Specifically, fixed income market analysts noted that sell pressure on the FEB-28 FGN bond, whose yield surged by +39 bps.

At the belly or mid-end of the curve, demand for bonds caused yield to bump by 2 bps. The investment firm noted that there was selling pressure on JUN-33 paper (-6 bps) and FEB-24 FGN bond, whose associated yield dipped by -10 bps.

Overall, the average yield expanded by 5 bps to settle at 18.70%. Across the benchmark curve, the average yield expanded at the short (+29 bps) end. The yield expansion came following the MAR-2025 (102bps) bond selloffs, according to fixed income analysts at Cordros Capital Limited.

However, yield curve declined slightly at the mid (-1bp) segment due to demand for the JUN-2033 (-6 bp) bond. The average yield closed flat at the long end. Due to DMO primary market auction, participants shifted their attentions, and then focused on the FGN bonds auction.

There were sellers of the May 2033 paper with offers ranging from 20.30% to 20.45%. Overall, the average mid-yield closed relatively flat at 18.46%. In a note, analysts at AIICO Capital Limited anticipate a mixed to bearish session on Tuesday, as the DMO sold more than expected on the May 2033 paper despite the stop rate closing significantly lower than the previous auction. #Benchmark Yield on Nigerian Bonds Rises to 18.70% CBN Defends Naira with $39m in Forex Market