Nigerian Bonds Yield Climbs as Investors Trim Portfolio
The benchmark yield in Nigerian government bonds climbed slightly as investors trimmed their holdings across the short-, belly- and long-tenor papers in the secondary market.
The local bond market closed on a bearish note due to some portfolio reshuffles ahead of the monetary policy committee meeting next week.
Heavy selling pressure was concentrated on the May-2033 and Jun-2033 papers, investment firm Cowry Asset told investors in a note, underscoring fragile investor sentiment amid persistent naira weakness and broader economic uncertainty.
The market saw notable yield expansions on the Nigerian bonds that will expire in 2033, driving a 4bps increase at the mid-segment of the curve.
Fixed income market analysts at Cordros Capital Limited said the average yield expanded at the mid (+4bps) segment, due to the sell-off of the JUN-2033 (+15bps) bond. Meanwhile, yield closed flat at the short and long ends.
Investors are likely to remain cautious, barring fresh catalyst, analysts said, adding that the monetary policy committee interest rate decision will informed action.
There is market consensus that yield on fixed income market will maintain downtrend to reflect changes in key macroeconomic indicators, especially inflation and interest rates. GTCO Slides Amidst Multiple Block Transactions
