Nigeria’s bond market ended the latest trading session calmly, with the average yield on FGN bonds remaining unchanged at 16.97%. This reflects a cautious approach from investors amid macroeconomic uncertainties and a tight monetary policy.
Liquidity remains constrained, and foreign portfolio inflows are waning due to naira volatility and global risk aversion. As a result, investors are holding their positions rather than trading heavily.
On the benchmark curve, the short end saw a slight increase of 1 basis point, while the mid-segment experienced mixed movements, with the February 2034 bond dropping 24 bps amid renewed buying. The 2031 and 2033 maturities also saw demand, reducing yields by 25 bps and 40 bps, respectively.
Yields above 16% attract conservative investors, but overall demand is cautious. Analysts anticipate yields will remain stable until inflation pressures ease or the Central Bank of Nigeria adjusts its policy. The market remains in a consolidation phase, striking a balance between high-yield opportunities and ongoing risks.
