Sell Pressure Hits Nigerian 10-Year Bonds, Yield Rises
Trading activities in the bond market was relatively quiet but with a bearish undertone as Nigerian 10-year bond faced with sell pressure.
The riskoff sentiment in the market followed moderate spot rates adjustment at the Debt Management Office (DMO) recent unimpressive primary market auction outturn.
Negative interest yield roughens investors’ returns on naira asset. Both inflation and interest rates have remained elevated but spot rates pricing were subdued by the DMO.
The benchmark yield on Nigerian government bond climbed a basis points in the secondary market following the mild selloff.
Traders said the average yield increased at the short (+1bp) end, as investors sold off the MAR-2025 (+2bps) bond but was unchanged at the mid and long segments.
MAY-2033 FGN bonds experience selling rout on Wednesday due to fresh riskoff sentiment amidst mixed estimates about inflation and interest rates directions.
Traders said the MAY-2033 paper recorded the biggest yield appreciation of 13 basis points as investors sold-off the instrument as part of efforts to rebalance portfolios and optimise returns on naira assets. Nigeria Partners with UK, Germany, Others on Green Industrial Dev’t
