The Federal Government of Nigeria Bond Average Yield surged to 18.8 percent over mild sell pressure in the secondary market.
The bond expanded by 2 basis point occurred on Friday.
The sell pressure was as a result of projected inflation and lower bond insurance in the third quarter of the market.
Investors and other market participant have been cautious with the local bonds amidst subdued rate.
“Fixed interest securities traders reported the average yield advanced 8 basis points at the short end of the curve as a result of sell pressure. The yield surged followed sell pressures on the MAR-2025 (+17bps) bond but closed flat at the mid segment.”
According to investment banking firms, inflation has been projected to start receding due to base effects. Weighing the market dynamics, trading in the FGN bonds secondary market was mixed, with most activities observed at the short and long ends of the curve.
Conversely, the average yield pared at the long (-1bp) end as players demanded the MAR-2035 (-28bps) bond.
“In the upcoming week, we envisage a possible upward repricing of yields, particularly on short-term instruments”, traders said in the note.
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