The yield on Nigeria’s Federal Government bonds rose above 20% for the first time in years, driven by inflationary pressures and sell-offs.
CardinalStone Limited reported bearish sentiments in the bond market, with significant sell pressure on the JUL-34 bond, resulting in a 138 basis-point yield increase. Profit-taking activity also affected other bonds along the yield curve.
AIICO Capital Limited highlighted demand for Feb 2031 and Feb 2034 bonds, while offers for June 2038 and June 2053 bonds were more prominent. Despite the bearish sentiment, trading volume was subdued, with limited transactions.
The Debt Management Office (DMO) plans to raise up to N1.8 trillion in the first quarter of 2025 through monthly auctions. The schedule includes reopening bonds maturing in April 2029 and February 2031, as well as a new issuance maturing in January 2035.
