Nigerian Bond Yield Steady at 19.10% Ahead Inflation
The average yield on Nigerian government bond was steady due to thin transactions recorded in the secondary market at the beginning of the week. Investors are repositioning their portfolio as the Debt Management Office (DMO) has reduced bond supply at the primary market auctions.
The debt office has achieved 80% of the borrowing targets from bond sales as part of efforts to provide funds for the government to finance the 2024 budget deficit.
At the end of trading session on Monday, fixed interest securities traders said in their separate notes that the FGN bond market opened the week quite calm, with the average yield remaining unchanged at 19.10% ahead of inflation data.
The statistics office is expected to release the consumer price index report Tuesday with mixed expectations on the inflationary trend after the petrol price adjustment. Trading data across the curve showed that FGN bond yields increased slightly at the mid-segment or belly of the curve (+3 bps) due to selloffs on the MAY-33 paper (+25 bps).
“There was significant interest in the May 2033 papers, which traded between 20.95% and 21.00% before settling at 20.80% due to renewed investor interest”, fixed income analysts at AIICO Capital Limited said in a note.
Fixed income market analysts noted that the average yield pared at the short (-1bp) end of the curve as investors increased positions with demand for the MAR-25 (-9bps) bond. However, yield closed flat at the mid and long segments.in the market# Nigerian Bond Yield Steady at 19.10% Ahead Inflation NGX Hits N59.5Trn as Aradel Holdings Comes to Market
