When investors in fixed-interest securities decreased their holdings in their portfolios, the average yield on Federal Government of Nigeria (FGN) bonds increased on the secondary market. As a result, average yields rose to 18.75%, up 0.02%.
In their individual market updates, traders said that selloffs had skewed to the midpoint (+6 bps) of the curve in advance of the anticipated increase in the inflation rate in May 2024.
Fixed income traders report that heavy sale action on the FEB-31 FGN Bonds has pulled the corresponding yield upward by +12 bps. The FGN bonds dated February 34 had a similar situation, which resulted in a +12 bps increase in yield.
Additionally, investors reduced their interest in MAR-2025 FGN notes, which increased the yield by +6 bps but stayed the same over time.
