Nigerian Bonds Investors Hold Positions, Yields Steady
The Federal Government of Nigeria (FGN) bonds traded soft in the secondary market in the absence of a bargain-fuelling catalyst to lift investors’ subdued sentiment.
Bond investors held positions tight amidst uncertainties in the economy, fluctuating returns and intermittent profit-taking activities.
At the close of the trading session, the investment firm reported that the average yield closed flat at 16.97%, citing thin trading activity in the secondary market.
Across the benchmark curve, the average yield expanded at the short (+1bp) end, driven by the profit-taking activities on the MAR-2027 FGN bonds (+2bps) bond. The yield remained unchanged at the mid and long segments.
Across the curve, yields contracted slightly at the mid-segment (-3bps) due to selloffs on the FEB-34 paper (-24bps). The market saw bullish activity on mid tenors. Yields fell sharply on the Nigerian bonds that will mature in 2031 and 2033. A few deals were however executed.
Meanwhile, the Treasury bills market ended the session on a bearish note, with the average yield increasing by 8bps to settle at 18.72%. Demand remained largely focused on long-dated papers (+14bps), led by the newly issued 1-year Treasury bills, which was the most actively traded instrument.
The FGN bonds market remained quiet for most of the week, with limited activity. Early interest was seen in the 2029s, 2031s, 2033s, and 2053s, though volumes were thin.
Activity picked up slightly later, with buying in the 2031s and 2033s pushing yields down by 25 bps and 40 bps, respectively.
Overall, trading stayed subdued, and average mid-yields ended the week 4 bps lower at 17.00%. Analysts expect a quiet start to the week for investors, as yields may remain elevated in the near term. # Nigerian Bonds Investors Hold Positions, Yields Steady CBN Raises N1.205trn from OMO, Treasury Bills, Rejects Bids
