Trading in Nigerian government bonds concluded on a sour note, as inflation data shifted market mood. Traders reported a reasonably peaceful Nigerian bond market, with the exception of negative activity on the long end of the curve.
Investors reduced interest on the JUN-38 FGN paper, resulting in a +156bps rise in its yield curve. At the end of the trading day, the average yield jumped by 6 basis points and settled at 19.16%.
The direction of Nigeria’s inflation rate has changed as a result of rising gasoline prices. In September, the monetary authorities boosted the interest rate to 27.25% to battle the country’s deplorable inflation situation.
