Nigeria: Bond Yields Hit 8-month High on Sell Pressure
By Dipo Olowookere
The bond market in Nigeria was bearish on Thursday as investors embarked on selloff, leaving the average yields closing at 15.13 percent, the highest in more than eight months.
It was observed that at the market yesterday, investors became increasingly cautious following developments in the treasury bills market.
The rates at the T-bills market are increasingly becoming very attractive to market players, who are now entering the space to quickly make profit before the rates start receding.
At the bond market yesterday, there were selloffs on the 2-year bond, though there was still slight interest around the mid tenors.
According to Zedcrest Research, their average yields expanded by 0.08 percent with most trades done closer to 15.20 percent from 15.10 percent previously.
“We expect this uptrend to persist, as sentiments remain weak in view of the expected flattening in inflation results which are expected today, coupled with the continued spike in short term T-bill rates,” the Lagos-based investment firm said.