Bond market trading was comparatively calm, although there was a negative undertone due to sell pressure on Nigeria’s 10-year bond.
Following the recent poor primary market auction outturn at the Debt Management Office (DMO), the market adopted a risk-off mindset.
Investor returns on naira assets are textured by negative interest rates. Interest rates and inflation have continued to rise, although the DMO has restrained spot rate pricing.
After the little selloff, the benchmark yield on Nigerian government bonds increased by one basis point in the secondary market.
Traders said the average yield increased at the short (+1bp) end, as investors sold off the MAR-2025 (+2bps) bond but was unchanged at the mid and long segments.
MAY-2033 FGN bonds experience selling rout on Wednesday due to fresh riskoff sentiment amidst mixed estimates about inflation and interest rates directions.
Traders said the MAY-2033 paper recorded the biggest yield appreciation of 13 basis points as investors sold-off the instrument as part of efforts to rebalance portfolios and optimise returns on naira assets.
