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    MarketForces Africa » MarketForces News » Bonds Yields Ease, Investors Boost Holdings as Real Return Climbs

    Bonds Yields Ease, Investors Boost Holdings as Real Return Climbs

    Ogochukwu NdubuisiBy Ogochukwu NdubuisiJuly 23, 2026 News No Comments2 Mins Read
    Bonds Yields Ease, Investors Boost Holdings as Real Return Climbs
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    Bonds Yields Ease, Investors Boost Holdings as Real Return Climbs

    The average yield on Nigerian government bonds declined in the secondary market as investors increased their bets in the local debt capital market.

    Inflation decelerated to 15.91% despite the global energy crisis, bolstering investor optimism, while Nigeria’s gross domestic product (GDP) is estimated to rise by 4.1%, according to the International Monetary Fund.

    Real return on naira increased to 10.59% due to a decline in the headline inflation rate, while the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) maintained the status quo on the policy rate at 26.50%.

    Investors raised bets on local bonds in the secondary market to optimise portfolios due to lower bond supply by the Debt Management Office at the recently concluded July auction. 

    Due to risk-on sentiment, yields contracted across the curve: short (-12 bps), mid (-2 bps), and long (-1 bps), traders said, reflecting a decision to lock in returns after weaker supply at the July auction.

    The most notable declines were recorded across Federal Government Bonds with 2027-2031 maturities, bringing the average FGN bond yield down by 6bps to 17.48%.

    Fixed income market analysts said debt capital market investor interest remained concentrated on recently auctioned bonds offering attractive yields.

    Trading records indicated that fixed income investors positioned at the mid-segment of the curve – demand was seen in the Jan 2035, Apr 2037, and Jun 2038 bond tenors.

    These debt papers were quoted at 18.15%/18.07%, 18.15%/18.05%, and 18.15%/18.10%, respectively, Herwood Capital Limited said in an investors’ note.

    Fixed income market analysts said early trades were executed on the Jan 2035 and Jun 2038 bonds at 18.00% and 18.07%, respectively.

    As the session progressed, demand filtered into the market, and the Jan 2035, Apr 2037, and Jun 2038 bonds were later seen trading at 17.95%/17.85%, respectively. The short and long ends of the curve remained largely quiet. Money Market Rates Mixed as Banks Put Excess Cash with CBN

    debt market FGN Bonds
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    Ogochukwu Ndubuisi
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    Ogochukwu Ndubuisi is an editorial content strategist and financial news writer at MarketForces Africa, covering a broad range of topics including Nigeria's equity markets, infrastructure development, energy, government policy, corporate finance, and digital economy.With over 2,400 published articles on MarketForces Africa, Ogochi brings depth and consistency to the publication's daily news coverage.Her reporting spans Nigerian Exchange Group market movements, Lagos State infrastructure projects, and federal government economic policies, oil and gas developments, and emerging sectors shaping Nigeria's economic landscape.She also covers Africa-wide stories, including East African market indices, continental investment trends, and cross-border economic developments.Ogochi works closely with MarketForces Africa's editorial and corporate communications teams to deliver accurate, timely, and well-researched content to the publication's professional readership.Ogochukwu Ndubuisi is based in Lagos, Nigeria.

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