Nigerian Bonds Yield Rises on Portfolio Reshuffles
The Nigerian government bonds sell pressure extended due to some portfolio rebalancing efforts by wealth managers in the secondary market.
The market is projected to respond to lower spot rates offered to investors at the primary market auction for Treasury bills by the Central Bank.
The authority cuts spot rates on Treasury bills across standard tenor, and one year bills was priced down below 17%. Investors see the downward rates repricing as signal the monetary policy committee could begin policy easing as real interest rate surged to 7.38% following August disinflation.
The market anticipates headline inflation to continue to drop in the fourth quarter, reflecting the naira stability and lower fuel price and moderation in the food prices.
Hence, the FGN bonds market traded with a subdued, bearish tone. The new bonds that are expected to expire in 2029, 2031, and 2033 were offered around 16.30%, 16.25%, and 16.15%, respectively, according to AIICO Capital Limited.
Analysts said though wide bid-ask spreads limited executed trades – keeping trading activities subdued with a bearish display on Wednesday.
The benchmark yield curve fell 16 bps to 16.27%, AIICO Capital Limited said in its market report. Analysts said market sentiment is expected to turn bullish as investors react to the lower 1-year NTB stop rate, with ample liquidity conditions providing additional support.
Across the benchmark curve, the average yield contracted at the short (-5 bps) end following the demand for the JAN 2026 (-37 bps) bond but remained unchanged at the mid and long segments. #Nigerian Bonds Yield Rises on Portfolio Reshuffles UAC Nigeria’s Crystallised Shares: What Investors Should Know
