Yields on Nigerian government bonds ticked upward as investors reduced their exposure across short-, mid-, and long-term instruments in the secondary market. Trading activity ended on a bearish note, driven largely by portfolio adjustments ahead of next week’s monetary policy committee meeting.
Cowry Asset Management reported that significant sell-offs were concentrated on the May-2033 and June-2033 maturities, indicating fragile market sentiment amid persistent naira volatility and widespread economic uncertainty.
Bond instruments maturing in 2033 recorded notable yield increases, resulting in a 4-basis-point rise in the mid-section of the yield curve.
Analysts at Cordros Capital Limited observed that the average yield climbed in the mid-tenor range by 4 basis points, largely due to heavy sales of the JUN-2033 bond, which expanded by 15 basis points. Meanwhile, yields at the short and long ends of the curve remained unchanged.
With no immediate catalysts expected, analysts predicted continued investor caution, noting that market direction will hinge on the upcoming monetary policy rate decision.
Market consensus reflects expectations that fixed-income yields will continue trending downward in line with shifts in major macroeconomic indicators such as inflation and interest rates.
