The benchmark yield on Nigerian bonds climbed in the secondary market as domestic investors trimmed their positions ahead of the monthly bond auction.
Trading activity was muted, causing the average yield to increase by 2 basis points (bps) to 19.48%, according to a report by Cowry Asset Limited. The shift in focus to the Treasury bills auction was driven by surplus liquidity in the money market, which heightened subscription levels.
Market dynamics saw most trades dominated by sellers anticipating higher rates at the Treasury bills auction, particularly for 2031 maturities, according to a note by TrustBanc Financial Group. Analysts described a subdued market, with wide bid-offer spreads limiting completed trades.
There was minimal activity for April 2029 and February 2031 bonds due to a scarcity of matching bids. Across the benchmark curve, average yields increased slightly at the short end (+1bp), per traders at Cordros Capital Limited. Meanwhile, selloffs on the January 2026 bond caused its yield to rise by 2bps, while yields at the mid and long segments remained flat.
