Yields on Nigerian government bonds rose last week as investors reduced their demand for fixed-income securities, pushing bond prices lower.
The average yield on Federal Government of Nigeria bonds increased by 11 basis points week-on-week to 15.92 per cent, according to market analysts.
The increase came as investors remained cautious in the secondary bond market, leading to weaker demand across major maturities.
When demand for bonds falls, their prices typically decline, causing yields to rise.
Analysts said the market is also adjusting to the recent 3.5 percentage-point cut in the Central Bank of Nigeria’s benchmark interest rate, which is expected to put pressure on fixed-income yields in the coming months.
Meristem Securities said the lower policy rate would likely encourage investors to adjust their expectations for bond yields, particularly as the market enters the fourth quarter.
The decline in inflation is another factor shaping investor expectations. Headline inflation fell to
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