Nigerian Bonds Yield Rises as Investors Trim Holdings
The Nigerian bonds benchmark yield rose in the secondary market as local investors trimmed holdings ahead of the monthly auction.
The trading activity in the bond market was subdued, resulting in a 2 basis points (bps) rise in the average yield to 19.48%, according to Cowry Asset Limited.
Investors’ attention shifted to the Treasury bills auction, which received a higher subscription level due to surplus liquidity condition in the money market yesterday.
Most trades were dominated by sellers positioning themselves for the Treasury bills auction in anticipation of higher rates, especially for 2031 paper, TrustBanc Financial Group said in a note.
Fixed income market analysts said very few trades were consummated as bid-offer spreads were mostly wide.
There were limited offerings for the April 2029 and February 2031 bonds. However, trading activity remained subdued due to a lack of matching bids.
Across the benchmark curve, the average yield inched higher at the short (+1bp) end, traders at Cordros Capital Limited said in a note.
Investment analysts said yield expanded on the back of selloffs of the JAN-2026 (+2bps) bond. However, yield closed flat at the mid and long segments.#Nigerian Bonds Yield Rises as Investors Trim Holdings#
