Yields on Nigerian government bonds have climbed above 20.4% in secondary markets as investors brace for the country’s first bond auction of the year. This rise comes amid growing concerns over inflation, which has surged to 34.8%, well above the central bank’s benchmark interest rate of 27.5%.
Higher inflation has dampened investor confidence, leading to sell-offs in bonds across short, mid, and long-term maturities. Notably, bonds maturing in 2026, 2032, and 2035 saw significant yield increases, indicating reduced demand.
Despite an influx of N91 billion in bond coupon payments, the market remains under pressure. Investors anticipate higher yields at the upcoming auction, reflecting a cautious approach to managing portfolios in an uncertain economic environment.
