The Nigerian Federal Government bond market remained relatively calm in the secondary trading space, as investors held their positions in the absence of strong catalysts to drive market sentiment.
Market analysts reported that investors stayed cautious amid ongoing economic uncertainty, fluctuating returns, and intermittent profit-taking, resulting in muted activity across the week.
At the close of trading, the average yield on government bonds settled unchanged at 16.97%, reflecting limited demand in the market. Activity at the short end of the curve saw yields edge higher by 1 basis point (bp), largely influenced by profit-taking on the March 2027 bonds, which gained 2bps. However, mid and long-term maturities remained broadly stable.
In the mid-segment, yields contracted slightly by 3bps, driven by strong buying interest in the February 2034 papers, which saw a sharp decline of 24bps. Similarly, the 2031 and 2033 bonds witnessed renewed demand, leading to notable drops of 25bps and 40bps, respectively. Despite this, trading volumes were light.
Meanwhile, the Treasury bills market ended on a bearish note, as the average yield climbed by 8bps to 18.72%. The newly issued one-year paper was the most actively traded instrument, with yields on long-dated bills rising by 14bps amid heightened demand.
Overall, activity in the bond market was subdued for most of the week, with early buying interest concentrated in the 2029, 2031, 2033, and 2053 maturities. Analysts predict that yields are likely to stay elevated in the short term, with a quiet start to the coming week.
