Sell Pressure Pushed Nigerian Bonds Yield to 18.83%

Benchmark yield on Nigerian government bonds climbed to 18.83% as fixed interest securities investors offloaded naira assets in the secondary market. Buying sentiment paused as Debt Management Office (DMO) released notice of its reopened bonds worth N450 billion.

Compared with spot rates on Treasury bills, the Nigerian debt office has remained tight fisted in pricing government borrowing instruments. It also frontload its offers for the year while keeping spot rate subdued.

Market analysts explained that sustained demand for Naira assets allowed low rate pricing in the past primary market auctions. A steep surge of more than 70% in money supply in the economy has been a backup for continuous rise in demand for government notes and other short term instrument.

In the secondary market on Thursday, the market recorded some selloffs on FGN Bonds at the short (+3bps) and long (+17bps) ends of the curve. Particularly, asset managers and other investors sold their interest in the Mar-2026 FGN bonds, causing its yield to rise by +53bps.

The market also saw investors offloading Jun-3038 instruments – as such its yield rose by +96bps. Meanwhile, the average yield declined at the mid (-7bps) segment due to demand for the APR-2032 (-17bps) bond. Consequently, the average yield expanded by 6bps to close at 18.83%. #Sell Pressure Pushed Nigerian Bonds Yield to 18.83%

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