Yield on Nigerian Bonds Rises to 19.75% of Soft Selloff
The average yield on Federal Government of Nigeria (FGN) bonds saw a marginal increase in the secondary market over soft sell pressure, resulting in a slight uptick of a basis point in the average yield to 19.75%.
Trading activities were relatively quiet on subdued yields and a slowdown in bond supply by the Debt Management Office. In their separate market updates, a slew of investment analyst revealed that there was no substantial volume traded throughout the trading sessions last week.
Across the benchmark curve, the average yield expanded at the short (+2 bps) end, according to Cordros Capital Limited. The yield surged following profit-taking activities on the JAN-2026 (+6 bps) bond but remained unchanged at the mid and long segments.
Investment analysts noted that asset managers and other market participants refrained from active trading in anticipation of a huge monthly auction starting in 2025 in support of the budget deficit. Still, trading activity patterns revealed modest selloffs at the mid- and long ends of the curve last week as part of portfolio rebalancing efforts.
The May-33 maturity bond received the highest number of offers, rising by 15 bps, alongside activity in the Feb-34 and Jun-54 bonds, according to TrustBanc. The local bond market experienced a quiet week, with investor interest focused on the mid-to-long end of the curve.
Selective demand targeted the April 2029, February 2031, and April 2037 maturities, though trading volumes remained subdued. Interest persisted in the February 2031 paper midweek.
Last week, cherry-picking activities was observed across the belly to the tail end of the curve, according to AIICO Capital Limited. Analysts expect the bond market to remain calm in the new week as participants conclude the year with housekeeping activities. #Yield on Nigerian Bonds Rises to 19.75% of Soft Selloff Navy Intercepts Boat Laden with 100,000 litres of Stolen Crude Oil in Ondo
