Nigerian Bonds Yield Rises to 19.80% Ahead of 2025 Supply
The benchmark yield on Nigerian government bonds inched higher by two basis points in the secondary market due to sell-side activities ahead of 2025 supply.
The average yield reached 19.80% as trading activities in the local bond secondary market were minimal, with cautious transactions on government notes as investors awaited the first quarter of the 2025 auction calendar.
Inflation, liquidity conditions, and local investors’ sentiment are expected to affect spot rates on government bonds in the current year. Inflation is expected to decline due to the latest developments around refineries overhauling and the hawkish pose by the Central Bank.
The Debt Management Office (DMO) is expected to release details of its local borrowing schedule for its monthly auction sales. DMO is expected to raise more than N7 trillion to close the gap between government revenue and spending plan for the year.
On Thursday, traders reported that there was a mild bearish sentiment on the APR-32 (+37bps) and MAR-36 (+27bps) instruments. The market also noted transactions on the February 2031 and May 2033 bonds.
According to Cordros Capital Limited, the average yield declined at the short (-1bp) end driven by demand for the JAN-2026 (-5bps) bond but expanded at the mid (+10bps) and long (+3bps) segments following selloffs of the APR-2032 (+37bps) and MAR-2036 (+27bps) bonds, respectively.
Overall, the average yield on Nigerian bonds prints higher at 19.80%. £Nigerian Bonds Yield Rises to 19.80% Ahead of 2025 Supply NEM Insurance Targets N7.1bn Profit in Q1-2025
