Nigeria’s Bonds Yields Steady on Quiet Trading
The average benchmark yield on Nigerian government bonds steadied in the secondary market due to inactivity. The local bond market experienced a lacklustre session, with minimal trading activity observed in the mid- and long-dated securities ahead of inflation data.
The statistics office would release inflation figure for Nov in a couple of days, with market expectations revealing a further uptick. Nigeria’s inflation rate accelerated to 33.88% after two times of disinflation, which was upturned by an increase in the price of petroleum in the second half of the year.
Yields on FGN bonds have remained subdued, though an interest rate hike by the monetary authority has narrowed the negative interest yields on the debt market instruments.
Investors showed moderate interest in Feb 2031s and Jun 2053s bonds in the secondary market despite activity cooling off. In general, the average mid-yield concluded at 19.43%.
“Mild demand was observed from market players comfortable with current yield levels, particularly the auction papers: Apr-29 and Feb-31 maturities, which saw improved offers at 20.90% and 21.88%, respectively”, TrustBanc Financial Group said in a note.
Fixed income market analysts noted that only a few trades were consummated due to wide bid-offer spreads. #Nigeria’s Bonds Yields Steady on Quiet Trading NNPC Launches Methane Abatement Pilot Project in Niger Delta
