Nigerian Bond Yield Declines to 19.72%
The average yield on Federal Government of Nigeria (FGN) bond declined marginally to 19.72% in the secondary market on Wednesday due to buying interest.
Traders noted that activities level in the market were mixed, with buying activity seen on the short-end of the curve (-2bps), while sell-offs were primarily on the mid (+3bps) and long (+1bp) of the curve.
According to fixed interest securities asset managers at Cordros Capital Limited, the average yield closed flat at the short end but declined at the mid (-6bps) segment.
The yield contractions at both segments was due to buying interests in the FEB-2031 (-15bps) bond. Conversely, the average yield expanded slightly at the long (+1bp) end driven by sell pressures on the JUNE-2053 (+7bps) bond.
On Monday, the Debt Management Office (DMO) conducted a bond auction. The indicated amount is on offer is N190 billion. All instruments on offer are re-opening issues.
Meanwhile, in the secondary market, the sentiment has been bearish since the last auction, as the average bond yield rose to 19.70% as of August 16, 2024, from 19.29% at the last auction date.
The DMO concluded the last bond auction in July 2024, offering higher rates to investors. Marginal rates on the trio instrument 2029, 2031, and 2034 increased by 25bps, 81bps, and 48bps to 19.89%, 21.00%, and 21.98%, respectively. #Nigerian Bond Yield Declines to 19.72%
