Economy
Eurobonds Gain on Renewed Demand as Local Bonds remain Cautious on Yields upsurge
The Nigerian secondary bond market recorded mixed trading activity during the week under review, with mild buying and selling interest observed across all tenor segments.
This resulted in a modest 16bps uptick in the average yield to 16.62%, as investors adopted a cautious stance amid tight system liquidity and the absence of strong primary market catalysts.
In contrast, the sovereign Eurobond market posted a mild bullish performance during the week, with broad-based demand across the curve.
Consequently, average Eurobond yields declined by 2bps week-on-week to 7.96%, reflecting renewed investor appetite for high yield emerging market debt.
In the new week, the domestic bond market is expected to trade quietly, as investors adopt a cautious stance while the DMO finetunes supply.
Selective demand at attractive points may spur mild rallies, but tight liquidity and the absence of new issuance in the week should keep yields range-bound.