Yields on local bonds to fall this week

monjola sotubo

April 20, 2015 10:34 AM

This is attributable to a renewed appetite from both local and offshore investors and increased liquidity from maturing bonds.

Director General of Nigeria's Debt Management Office, Abraham Nwankwo.

One week after the Federal Government raised N70bn from the sale of lower yield bonds, yields are expected to drop even more.

Nigeria’s successfully held general elections have led to a boost in demand in the nation’s bonds market.

“The market was all bullish from a range of interest by investors taking position after the successful election,” a dealer told Reuters.

Traders said the market could get a liquidity boost from maturing April 2015 bonds on Thursday, raising demand for local debt as holders are likely to reinvest in the market.

Yields at the secondary market have fallen across the maturities with the 2016 paper down to 14.06 per cent from 14.96 per cent last week, while the yield on the 2022 debt fell to 14.02 per cent against 14.87 per cent. The yield on the 2024 debt traded at 13.91 per cent from 14.81 per cent.

monjola sotubo