Nigeria’s secondary bond market closed on a mixed note on Thursday, with the average benchmark yield declining by 29 basis points to 15.44%, reflecting renewed demand across selected segments of the naira curve.
Market participants adjusted portfolio positions in line with internal yield targets, resulting in uneven trading activity across maturities. Despite a broader moderation in interest rates, fixed income investors continued to position in instruments offering attractive real returns, reinforcing the appeal of inflation-protected naira assets.
Trading activity was concentrated in the mid-range of the curve, where selective demand drove yield compression in specific maturities. Bonds maturing April 27, 2032 declined by 18 basis points to close at 15.60%, while the May 15, 2033 paper shed 14 basis points to settle at 15.59%.
However, this demand was counterbalanced by increased offers in other mid-tenor instruments. The 17-Apr-2029 maturity recorded an 11 basis point increase in yield to 16.01%, reflecting supply pressure. Similarly, the 18-Jul-2034 bond rose by 19 basis points to close at 15.68%.
At the short end of the curve, movements were largely muted. The 20-Mar-2027 and 21-Feb-2031 maturities each declined by 1 basis point to 15.96% and 15.78%, respectively, while other short-dated instruments remained broadly unchanged.
Further along the curve, the 21-Feb-2034 bond gained 7 basis points to close at 15.59%, while longer-dated instruments recorded no significant shifts.
According to Anchoria Securities Limited, mid-range yields closed within a band of 15.20% to 16.50%. Analysts at AIICO Capital reported that buying interest was selective across various segments of the yield curve but was offset by light selling pressure, resulting in several benchmark instruments holding steady.
Overall, the 29 basis point contraction in the average benchmark yield to 15.44% underscores sustained investor appetite for mid-tenor securities. Anchoria Securities analysts expect demand for these instruments to remain firm in the near term, noting that prevailing demand-supply dynamics will continue to shape yield direction.
