Fixed Income on Fire: T-Bills, Bonds & Eurobonds Soar as Yields Tumble Across Board
Last week, the Nigerian fixed income market closed on a strong bullish note, with significant yield declines recorded across Treasury bills, local bonds, and Eurobonds, signaling broad investor confidence and heightened demand.
Treasury Bills (T-Bills) Market
The T-bills secondary market saw average yields drop by 5 basis points, from 20.90% to 20.84%, reflecting continued bullish sentiment:
• Short-Term Bills: Most demand concentrated here. Yields dropped 53bps, with buying interest focused on the 20-day, 34-day, and 83-day maturities.
• Mid-Term Bills: Largest yield compression of 102bps, driven mainly by the 264-day bill, which alone dropped 28bps.
• Long-Term Bills: Declined by 7bps, with the 279-day and 356-day maturities falling by 39bps and 19bps, respectively.
Local Bonds Market
The local bonds market also turned bullish, with average yields slipping 4bps to 19.03% from 19.07%:
• Short-Term Bonds: Yields dropped by 10bps, notably in MAR-2026 (-17bps) and JAN-2026 (-6bps).
• Mid-Term Bonds: Saw a 43bps drop, largely due to strong demand for JUL-2034 (-27bps).
• Long-Term Bonds: Yield compression reached 58bps, driven by interest in APR-2037 (-20bps) and APR-2049 (-18bps).
Eurobond Market
A more dramatic movement was seen in Nigeria’s Eurobond segment, where yields dropped 60bps to 9.79% from 10.39%:
• Rally was broad-based, with top-performing papers including:
• MAR-2029: -75bps
• NOV-2027: -75bps
• SEP-2028: -67bps
The bullish Eurobond run was supported by an improvement in global macroeconomic sentiment, especially due to a temporary resolution of U.S.–China trade tensions.
What’s Fueling the Bullish Trend?
According to Meristem Securities, this sweeping rally in fixed income was driven by:
• Strong local demand for income-generating assets
• Attractive yield environment across maturities
• Improving external conditions that support foreign investment inflows
Outlook: More Gains Ahead?
Analysts believe the bullish momentum could persist, especially if:
• Macroeconomic stability continues to strengthen
• CBN’s monetary policy remains accommodative
• Global risk sentiment remains favourable
Bottom Line: Last week’s fixed income performance tells a powerful story — investors are actively repositioning across short, mid, and long-term debt instruments, betting on lower yields and higher prices. With confidence returning to the bond and Eurobond space, this could mark a shift in market dynamics for Q2 2025.
Last week, the Nigerian fixed income market closed on a strong bullish note, with significant yield declines recorded across Treasury bills, local bonds, and Eurobonds, signaling broad investor confidence and heightened demand.
Treasury Bills (T-Bills) Market
The T-bills secondary market saw average yields drop by 5 basis points, from 20.90% to 20.84%, reflecting continued bullish sentiment:
• Short-Term Bills: Most demand concentrated here. Yields dropped 53bps, with buying interest focused on the 20-day, 34-day, and 83-day maturities.
• Mid-Term Bills: Largest yield compression of 102bps, driven mainly by the 264-day bill, which alone dropped 28bps.
• Long-Term Bills: Declined by 7bps, with the 279-day and 356-day maturities falling by 39bps and 19bps, respectively.
Local Bonds Market
The local bonds market also turned bullish, with average yields slipping 4bps to 19.03% from 19.07%:
• Short-Term Bonds: Yields dropped by 10bps, notably in MAR-2026 (-17bps) and JAN-2026 (-6bps).
• Mid-Term Bonds: Saw a 43bps drop, largely due to strong demand for JUL-2034 (-27bps).
• Long-Term Bonds: Yield compression reached 58bps, driven by interest in APR-2037 (-20bps) and APR-2049 (-18bps).
Eurobond Market
A more dramatic movement was seen in Nigeria’s Eurobond segment, where yields dropped 60bps to 9.79% from 10.39%:
• Rally was broad-based, with top-performing papers including:
• MAR-2029: -75bps
• NOV-2027: -75bps
• SEP-2028: -67bps
The bullish Eurobond run was supported by an improvement in global macroeconomic sentiment, especially due to a temporary resolution of U.S.–China trade tensions.
What’s Fueling the Bullish Trend?
According to Meristem Securities, this sweeping rally in fixed income was driven by:
• Strong local demand for income-generating assets
• Attractive yield environment across maturities
• Improving external conditions that support foreign investment inflows
Outlook: More Gains Ahead?
Analysts believe the bullish momentum could persist, especially if:
• Macroeconomic stability continues to strengthen
• CBN’s monetary policy remains accommodative
• Global risk sentiment remains favourable
Bottom Line: Last week’s fixed income performance tells a powerful story — investors are actively repositioning across short, mid, and long-term debt instruments, betting on lower yields and higher prices. With confidence returning to the bond and Eurobond space, this could mark a shift in market dynamics for Q2 2025.