Yields on Nigerian government bonds climbed in the secondary market on Wednesday as investors reacted to the recent upward adjustment in Treasury bill rates, particularly the jump in the one-year tenor to 17.95%.
The persistent repricing of long-tenor Treasury bills—up from 16.04% two weeks ago—has weakened sentiment in the bond market, prompting sell-offs across several maturities.
Analysts reported broad yield expansion at both the short and mid segments of the curve, with notable movements in bonds maturing in 2027, 2028, and 2032. As a result, average yields expanded by 8 basis points to close at 16.70%.
AIICO Capital Limited noted sustained selling pressure at the short end, where most yields widened by more than 50 bps, with the exception of the 26-Apr-29 bond, which gained 20 bps to reach 17.11%.
In the mid-tenor category, moderate demand was observed for the 21-Feb-2031 and 27-Apr-2032 maturities, leading to yield declines of 5 bps and 6 bps to 17.33% and 17.14%, respectively. Conversely, caution around the 25-Jun-33 bond caused its yield to spike by 96 bps to 17.11%.
Activity at the long end remained subdued, except for the 21-Jan-42 maturity, which recorded a marginal 1 bp increase to 15.73%.
Overall, the average benchmark yield advanced by 8 bps to 16.70%. Analysts attribute the recent sell pressure to investors realigning their portfolios ahead of the upcoming bond auction scheduled for Monday, 15 December 2025.
