Yield on Nigerian Bonds Rises 12bps to 18.59%
Sell pressures hit Nigerian government bonds ahead of Treasury bills auction on Wednesday. The average yield on FGN Bonds climbed by 12 basis points to close at 18.59%. Investors seeking to switch, optimise fixed interest securities portfolio holding trimmed their interest in the secondary market for bonds.
The average benchmark retreated amidst shift in market dynamics spurred by inflation slowdown, and higher interest rate environment. Trading activities came softer, marked by wider bid/ask spreads. Selling pressure was especially evident on the mid-to-long-term maturities, with limited demand to offset it.
Handful of trades were consummated at the mid-range of the curve. Offers were seen at the mid-end of the curve from market players seeking to fund their liquidity gaps. Investors concentrated on the Feb 2031 and May 2033 papers. Due to sell down in bonds holdings, the yield on the Mar-25 paper jumped 348bps to reach 20.73%.
Analysts expect a cautious mood as investors closely monitor the outcome of the Nigerian Treasury bills auction for insights or indications on how Monday’s FGN bond auction might unfold. #Yield on Nigerian Bonds Rises 12bps to 18.59% Yield Slides on Post Auction Demand for Nigerian Treasury Bills
