The Nigerian secondary bond market traded on a bearish note last week as heightened selloffs and weak investor demand across most maturities pressured prices relative to the previous week.
Market activity remained subdued, reflecting cautious investor sentiment and reduced appetite for local fixed income instruments. Consequently, the average FGN bond yield rose by 10 basis points week-on-week to close at 17.88%.
Conversely, the Nigerian sovereign Eurobond market ended the week on a bullish note, supported by renewed demand across the yield curve as investors increased exposure to dollar-denominated sovereign securities.
This positive sentiment drove the average Eurobond yield down by 5 basis points to 7.03%, indicating stronger investor demand and improved confidence in Nigeria’s external debt instruments.
In this new week, it is expected the domestic bond market to remain cautiously traded as investors monitor liquidity conditions, inflation trends, and upcoming debt issuances, with yields likely to stay elevated in the near term. Meanwhile, the Eurobond market is expected to remain supported by sustained demand for Nigeria’s dollar denominated debt, although global market condition and the US treasury yield movements will continue to influence performance.
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