Part 3/5:
Looking ahead, industry experts project a continuing decrease in yields as the quarter progresses. Despite the expectation that the Central Bank of Nigeria (CBN) will continue borrowing to address a 13.7 to 13.9 trillion naira fiscal deficit from the local market—keeping yields attractive at 21%—the overall sentiment remains optimistic.
On the bond side, a new auction introduction of a 2035 bond achieved a closing yield of 22.6%, which captured considerable market interest. The oversubscription of this auction indicates a robust demand, hinting at a prevailing bullish sentiment.