The secondary market saw an increase in the average yield on Federal Government of Nigeria (FGN) bonds as a result of risk-off sentiment brought on by economic worries. The average rate in the secondary market increased by five basis points, ultimately settling at roughly 19.76%.
In advance of the nationwide #Endbadgovernance demonstration, bondholders profited from the curve. Traders reported that despite early mixed demand on a few papers, notably the 2031 and 2033 papers, the FGN bond market stabilized negatively.
The average mid-yield rose as investors profited from the naira assets, according to the trading pattern. Due to light activity, traders claimed that the average yield at the short and mid segments was flat.
However, yield curve advanced at the long end, gaining 11 basis points due to profit-taking activities on the APR-2049 bond in the secondary market.
The APR-49 instrument was the poorest performer, experiencing a yield increase of 50 basis points, according to a market update from Cowry Asset Limited to investors.
In Nigeria’s sovereign Eurobonds market, a bearish sentiment prevailed across the short, mid, and long segments of the yield curve, resulting in a 0.04% rise in the average yield to 10.19%.
In the money market, the Nigerian interbank offered rate declined by 18 basis points to close at 25.96% as banks with liquidity sought lower rates on Wednesday.
Key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) concluded at 25.39% and 25.83%, respectively, according to investment banking firms.
Meanwhile, in the Nigerian Interbank Treasury Bills to Yield (NITTY) space, rates across all tenor buckets showed upward movements, reflecting buyback interest from investors.
As a result, the secondary market for Nigerian Treasury bills displayed a positive trend, resulting in a marginal decline in the average yield.
