Benchmark Yield Rises as Investors Dump Nigerian Bonds

The benchmark yield on Nigerian government bonds rose marginally as local bondholder dumped assets over sustained riskoff sentiment in the secondary market.

FGN bonds market continued to show a mixed trend, with sustained demand for the February 2031 bond. Bids also weakened across long-dated bonds, although sellers offered some bonds maturing in 2050 and 2053, according to fixed income analysts at AICCO Capital Limited

Some sell-offs seen at the short (+4bps) and mid (+2bps) end of the curve. Consequently, the average yield inched up by 2bps to 19.25%, CardinalStone analysts told investors in a note.

Across the benchmark curve, the average yield expanded at the short (+3bps) and mid (+1bp) segments, analysts at Cordros Capital Limited wrote.

The investment firm said yield expanded due to selloffs of the APR-29 (+18bps) and JUL-30 (+6bps) bonds, respectively, but closed flat at the long end.

Overall, the benchmark yield on Nigerian government bonds settled at 19.28% in the secondary market on Thursday ahead of Monday auction. Next week, the Debt Management Office will offered N200 billion worth of local bonds for subscription at its monthly primary market auction.

Broadstreet analysts expect demand to remain strong as bond supply began to decline after earlier frontload pattern observed in the primary market auctions. The DMO is close to meeting 2024 borrowing target from the local debt capital market. #Benchmark Yield Rises as Investors Dump Nigerian Bonds

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