Selloffs Lift Nigerian Bonds Yield to 15.92%
Nigerian bonds faced selling pressure in the secondary market as investor sentiment weakened ahead of the treasury bill offering on Wednesday. Investors trimmed their holdings in anticipation of a fresh supply for April.
Fixed-interest security investors have been adjusting their portfolios after the inflation surge to 15.385, reducing the real returns on naira assets. Inflation is expected to rise further, further reducing the real interest rate in the debt capital market.
The market recorded selective buying in near-end maturities, while overall activity remained relatively subdued. Performance across the curve showed upward yield movements, particularly at the short-to-mid segment.
The 20-Mar-28 and 17-Apr-29 bonds recorded the only buying interest, losing 1bps each to close at 15.86% and 16.04%, respectively, while the 18-Jul-34 expanded by 1bps to settle at 16.15%.
Fixed income market analysts reported that most other maturities across the curve closed unchanged as investors anticipate the upcoming Nigerian Treasury Bills auction.
Due to selloffs, the average yields rose a basis point to 15.92%, suggesting subdued domestic investor sentiment and softer demand for naira-denominated sovereign instruments. FG Adopts Imo Local Initiative to Tackle Unemployment
