Nigerian Bonds Yield Rises as Investors Book Profit
The average yield on Nigerian government bonds rose in the secondary market as trading actions suggest waning investors appetite.
Trading activities was subdued with pocket of transactions observed in the short duration amidst expectation of huge local borrowing in 2026.
The Debt Management Office is anticipated to release its Q1 auction calendar as part of a move to finance Nigeria’s expanding budget deficit as a result of an unimpressive fiscal performance.
At the last monthly auction in December, the Debt Office reprised rates on 5-and 7-year reopened local bonds despite disinflation signal and widening real return on naira asset.
The spot rates surge is fuelling Nigeria’s borrowing costs, and some analysts think the trend is not sustainable given size of local borrowing expectation in 2026.
In the secondary market, investment firm reported that the federal government bond traded on a mixed-to bearish note as investors adopted a cautious stance, resulting in muted risk appetite and light positioning across the curve.
On the short end, AIICO Capital reported that the 17-Apr-2029 and 28-Nov-2028 FGN bonds recorded notable yield upticks of 24bps to 17.22% and 15bps to 17.06%, respectively.The yield surges suggest significant profit taking action by investors seeking to re-balance their portfolios.
At the belly of the curve, the 2030, 2031, 2032, 2033, and 2035 bonds maturities also saw notable yield increases.
Similarly, at the long end, yields rose across most maturities from 2035 to 2051, save-for the 26-Apr-49 and 18-Apr-38 bonds, which closed flat. Overall, the average benchmark yield increased by 12bps to close at 16.68%. #Nigerian Bonds Yield Rises as Investors Book Profit#
