Nigeria Bonds Yield Rises to 18.44% Ahead of Inflation
The benchmark yield on Nigerian government bonds climbed to 18.44% in the secondary market ahead of next inflation data. Analysts projected that the inflation rate, which has fallen behind the monetary policy rate, will decline further after the consumer price index rebasing.
The positive real return on naira assets has continued to trigger a rush to purchase, ramping up Nigerian bonds, but analysts have projected yield repricing for normalisation of activities. In the secondary market on Wednesday, trading activity was muted as investors focused on Treasury bills auction offers by the Central Bank of Nigeria.
However, analysts observed some activity at the mid-segment and long-end of the yield curve. Notably, yield on the Jun-53 paper climbed by 14 bps to reach 16.88%. Investors engaged in mild selloffs, primarily at the mid-end of the curve. The 2029 and 2031 FGN bond papers closed at an offered rate of 18.99% and 19.44%, according to TrustBanc Financial Group Limited.
This represents an uptick of one and four basis points when compared with the previous day’s close of 18.98% and 19.10%.
Overall, the average yield on FGN bonds edged higher by 1 bp to settle at 18.44%. The National Bureau of Statistics is expected to release the consumer price index in the next couple of days. #Nigeria Bonds Yield Rises to 18.44% Ahead of Inflation #Nigeria Bonds Yield Rises to 18.44% Ahead of Inflation AXA Mansard Plc. Climbs as Investors Bet on Earnings
