Nigerian Bonds Yield Climbs to 18.63% Ahead of Auction
In the secondary market, the Federal Government of Nigeria (FGN) bonds traded soft, albeit with a bearish tilt, as evidenced by a three basis point increase in the average yield, which settled at 18.63%.
Sell-offs were concentrated at the mid (+5bps) and long (+4bps) ends of the curve, specifically the JUL-31 (+16bps) and JAN (+24bps) papers, according to investment analysts notes. The selloffs persisted in the market as high rates fever intensified following the outcome of yesterday’s NTB auction result.
The upward adjustment to spot rates guided trading activities significantly as investors sought to begin portfolio repositioning. The pressure was most evident at the mid and long ends of the yield curve, where mild sell-offs pushed yields higher.
Notably, the Feb-31 and Jan-42 maturities closed at an offered yield of 19.55% and 18.00%, respectively, a 16bps and 24bps uptick from the previous day’s levels. As a result, average benchmark yield inched up, reinforcing expectations of a sustained cautious tone in the sessions ahead.
Fixed income market analysts said some interest was noted in the February 2031s, April 2032s, May 2033s, and February 2034s papers, with participants selectively targeting bonds.
However, trading volumes remained low, with only a few transactions executed ahead of the Debt Management Office (DMO) auction scheduled for Monday. #Nigerian Bonds Yield Climbs to 18.63% Ahead of Auction US Recession Looms for First Half of 2025 – CEO
