Bond Yields Ease on Strong Demand as Bulls Take Charge

The Nigerian secondary bond market ended week on a bullish streak, lifted by robust investor demand across short and medium-dated papers.

The rally reflected improved sentiment and a renewed appetite for fixed income assets, particularly as uncertainties in other asset classes kept investors anchored in bonds.

The broad-based buying wave shaved 8 basis points off average yields, which closed the week at 16.51%.

Momentum also filtered into the Nigerian sovereign Eurobond market, though activity was more muted. Mild interest across the curve left average Eurobond yields largely unchanged at 7.98% week-on-week, underscoring a cautious but steady investor stance.

Looking ahead, demand for short- to mid-tenor bonds is likely to stay firm, supported by attractive yields and ongoing portfolio rebalancing. Softer inflation readings and stable policy guidance could provide an extra lift to sentiment in the local debt market.

On the supply side, the Debt Management Office will test appetite at its upcoming primary auction, where it plans to raise N200 billion split between the AUG2030 and JUNE-2032 papers. With stop rates around 17.9%, expectations are high for another strong outing.