Banking
Bond Market muted as Global Signals Weigh
- While Eurobonds See Renewed Demand
Activity in the FGN bond secondary market was largely subdued last week, with minimal trading across the curve reflecting cautious investor sentiment.
As a result, average yields edged slightly higher to 15.77% from 15.76% in the previous week.
The muted tone suggests investors are taking a wait and see approach, influenced in part by evolving global market conditions and uncertainty around interest rate direction.
In contrast, Nigeria’s sovereign Eurobond market recorded a more positive outing, supported by broad-based buying interest. This drove a decline in average yields by 8bps to 7.18% week-on-week from 7.26%, indicating improved demand for Nigeria’s external debt instruments.
Looking ahead, it is expected that a mixed performance across both markets would prevail, as domestic activity continues to respond to liquidity conditions, while external sentiment remains closely tied to global developments, particularly movements in oil prices and international fixed income trends.