The Federal Government of Nigeria’s reopened April 2029 five-year bond has reached a record high stop rate of 22% at Monday’s bond auction, marking a 14 basis points increase from the 21% recorded at the previous auction.
Fixed-income analyst Joshua Joseph of CSL Stockbrokers attributed the rise in rates to poor market liquidity, which likely pushed investors to demand higher returns on their investments.
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Market liquidity remained under pressure last week, with the system opening N1.35 trillion short on Monday, reflecting significant strain on financial resources.
This month’s bond offer featured a reopened N60 billion issuance for both the five-year April 2029 and the seven-year February 2029 tenured bonds.
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