Bonds Selloffs Push Yield to 13.27%, T-Bills Steadies

Bonds Selloffs Push Yield to 13.27%, T-Bills Steadies

Trading activities in the fixed-income securities market were mixed Thursday as investors continue to optimise strategies for improving portfolios’ returns amidst a dearth of investment options.

Bonds selloffs continue, though there was a tepid transaction record in the secondary market for Nigerian Treasury bills due to liquidity conditions in the financial system.

Short-term benchmark market rates rose moderately as signs of liquidity pressures surfaced yesterday. The open repo rate spiked 14 basis points to 1.07. Also, the overnight lending rate increased 21 basis points to 1.57%. 

In its market update, CardinalStone said activities were muted in the FGN secondary bond market with several benchmark players closing around their flat line. Nonetheless, analysts said they witnessed some selloffs on 23-MAR-2025 bonds. The selloff turned to 66 basis points to close at 9.62%

Capturing the temperature in the secondary market for Nigerian bonds,  traders at Cordros Capital noted that across the benchmark curve, the average yield expanded at the short (+14bps) and long (+2bps) ends.

The decline came following Asset/Funds managers’ decision to offload MAR-2025 (+67bps) and JUN-2053 (+20bps) bonds, respectively. Elsewhere, the average yield was unchanged at the mid-segment.

The 10-year, 20-year, and 30-year FGN bonds held steady at 13.22%, 14.60%, and 14.96%, respectively.  Overall, the yield curve expanded by four basis points to 13.27%.

Elsewhere, fixed income market analysts spotted that FGN Eurobonds faced depreciation across all tracked maturities, reflecting sustained bearish sentiment. This translated into an average secondary market yield increase by 10 basis points to 10.41%.

The Nigerian Interbank Treasury Bills True Yield observed a downward trend across most maturities, driven by demand pressure, which pushed yields lower, Cowry Asset Management told investors.  Nonetheless, the average secondary market yield on T-bills remained at 7.01%. #Bonds Selloffs Push Yield to 13.27%, T-Bills Steadies#

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