By Boluwatife Oshadiya, 22nd April, 2026
Key Points
- Average bond yield rises to 15.92% amid sell pressure
- Investors rebalance portfolios as inflation weakens real returns
- Activity subdued ahead of Treasury bills auction
- Short-to-mid tenor bonds see most yield increases
Main Story
Nigeria’s sovereign bond market came under renewed selling pressure on Tuesday, pushing average yields higher as investors adjusted portfolios ahead of a fresh round of Treasury bills issuance.
Trading activity in the secondary market remained relatively subdued, with investors showing caution in anticipation of increased supply from the Debt Management Office’s April offerings. The selloffs were driven largely by expectations of higher yields in the primary market and concerns over declining real returns.
Market participants have continued to rebalance their fixed-income portfolios following a recent uptick in inflation, which has eroded the attractiveness of naira-denominated assets. With inflation projected to rise further, real interest rates remain under pressure, dampening investor appetite for long-duration instruments.
Across the yield curve, performance was largely bearish, with yields trending upward, particularly at the short-to-mid segment. However, selective demand was observed in near-term maturities.
The 20-Mar-2028 and 17-Apr-2029 bonds were the only instruments to record marginal buying interest, with yields declining by 1 basis point each to settle at 15.86% and 16.04%, respectively. Conversely, the 18-Jul-2034 bond saw its yield rise by 1 basis point to 16.15%.
Most other maturities closed flat, reflecting a cautious wait-and-see approach by investors ahead of the Treasury bills auction.
Overall, average bond yields rose by 1 basis point to close at 15.92%, underscoring weakening demand and a softer sentiment toward domestic debt instruments.
What’s Being Said
Analysts say the uptick in yields reflects investor repositioning in response to inflationary pressures and expectations of more attractive returns in upcoming primary market auctions.
What’s Next
The direction of yields will likely hinge on the outcome of the Treasury bills auction and subsequent liquidity conditions in the financial system. A strong primary market performance could further pressure secondary market yields, while sustained inflation risks may continue to weigh on investor sentiment.
