The Nigerian secondary bond market closed the week on a bearish note, reflecting subdued demand across most maturities.
Trading activity remained relatively weak, highlighting soft investor sentiment and a cautious appetite for local fixed income instruments amid prevailing market uncertainties.
Consequently, yields moderated slightly, with the average yield declining by 21 basis points to 15.75%, indicating mild demand for government securities during the week.
Similarly, the Nigerian sovereign Eurobond market recorded a negative performance, pressured by increased selling activity across the yield curve.
As a result, average yields rose by 19 basis points to 7.17%, signalling weaker investor sentiment and a reduced appetite for Nigeria’s dollar-denominated debt.
It is expected that Investor sentiment in Nigeria’s fixed-income markets likely to remain cautious in the near term. Persistent macroeconomic uncertainties, coupled with muted demand for both local and dollar-denominated debt, may continue to weigh on bond prices.
Market participants are expected to adopt a selective approach, focusing on higher-yielding instruments and shorter-dated maturities, while yields could experience modest fluctuations depending on liquidity conditions and fiscal developments.
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