By Boluwatife Oshadiya | March 24, 2026
Key Points
- Average sovereign bond yield holds steady at 15.73% amid cautious trading
- Short- and mid-term bonds record mixed movements across the curve
- Liquidity conditions and prior primary market activity drive subdued sentiment
Main Story
Nigerian sovereign bond yields held steady on Monday as investors maintained positions in naira-denominated assets, reflecting cautious market sentiment despite mixed movements across maturities.
Average benchmark yield closed unchanged at 15.73%, according to market data, as trading activity remained subdued across the curve. Analysts attributed the stability to sustained domestic investor confidence and strong system liquidity, which has continued to support demand for government securities.
Select maturities recorded minor repricing. Bonds maturing in March 2028 and November 2028 saw yields decline by three and one basis points respectively, indicating mild demand in the short-to-mid segment. Conversely, longer-dated instruments, including May 2033 and June 2033 bonds, recorded yield increases of five and three basis points, reflecting slight sell pressure.
Market participants noted that trading volumes remained thin, with investors adopting a wait-and-see approach following recent primary market auctions. In a market note, AIICO Capital reported that short-term bonds showed mixed performance, with the March 20, 2027 instrument quoted lower, while the February 23, 2028 bond edged up by one basis point to 16.18%.
Mid-tenor instruments also experienced upward pressure, with the May 2033 bond rising to 16.14%, while the April 2032 bond ticked up marginally to 16.07%. Meanwhile, select shorter maturities, including February 2031 and April 2029 bonds, saw yields ease slightly.
What’s Being Said
“Short-term instruments showed mixed movements as investors selectively repriced positions amid liquidity-driven demand,” AIICO Capital Limited said in a market note.
“The bond market remains supported by strong liquidity conditions, but investors are cautious following recent auction dynamics,” a Lagos-based fixed income trader told BizWatch Nigeria.
What’s Next
- Next primary bond auction expected to shape yield direction in late March
- Investors likely to monitor inflation data and monetary policy signals
- Liquidity levels in the banking system will continue to influence demand
The Bottom Line: Stable yields signal continued domestic confidence in government debt, but cautious positioning suggests investors are waiting for clearer macroeconomic direction before making aggressive moves.
