Nigeria: Benchmark Bond Yield Drops 40 Basis Points As Funds Buy Debt

1 March 2019

Yields on Nigeria's most liquid 10-year bond fell 40 basis point to 13.9 percent on Thursday as uncertainty eases for foreign investors following the conclusion of the first leg of the general elections.

Reuters disclosed that yields on the benchmark 2028 paper, which is most traded, have been falling with investors locking in attractive rates. The bond dropped to 14.3 per cent in the previous day's trade, its lowest in six months, from 14.5 percent the day before and 14.75 per cent the day before Saturday's election.

The Central Bank of Nigeria (CBN) had on Tuesday injected the sum of $210 million into the interbank foreign exchange (FX) market. The central bank had indicated that authorised dealers in the wholesale segment of the market were offered the sum of $100 million, while the small and medium scale enterprises (SMEs) segment received the sum of $55 million. Similarly, customers requiring FX for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

See What Everyone is Watching

More From: This Day

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.