Nigeria Bonds Yield Clears at 18.40% Ahead of Inflation
The average yield on Nigerian Government bonds settled at 18.40% ahead of inflation data for February. The next inflation figure is due for release by the statistics office in the coming days, and the market expects the consumer price index to cool off further from 24.48% after rebasing exercise.
On Thursday, the market posted thin transaction as traders remain cautious, saying falling yield could cause investors to exit positions in a fast and furious manners.
Most of the fixed income market players focused their attention on the Treasury bills market, particularly on the newly issued 1-year bill which was being offered at 10-15bps below the stop rate level.
Hence, the average benchmark yield holding steady at 18.40% on sustained subdued trading activities spurred by weak sentiment.
However, mild selloffs emerged at the short and mid segments, particularly the Apr-29 and Jun33 papers, with yields offered at 18.95% and 19.15%, respectively.
Traders reported that offers emerged in the mid-range of the curve, there were no corresponding bids. Investors showed interest in Apr 2029, Feb 2031, and May 2033 FGN bonds. The session concluded with only a handful of trades.
Yield decreased at the long (-2bps) end driven by demand for the JUN-2053 (-14bps) bond, while it closed flat at the short and mid segments.
Fixed income analysts now anticipate continued market sluggishness following the amendment of Q1 2025 NTB auction calendar, as market participants await clearer rate direction. #Nigeria Bonds Yield Clears at 18.40% Ahead of Inflation#
Yield Slides on Post Auction Demand for Nigerian Treasury Bills
