Investors abandons NGN40 billion of Nigeria’s debt auction

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Nigeria’s debt market might be losing its steam as bond investors only bought NGN100 billion out of NGN140 billion auction by the Debt Management Office, DMO.

There were concerns that the low yield on the notes which was behind current inflation rate of 17.26% could be one of the reasons why investors pulled back.

As the markets await the April inflation rate, which might be coming lower, yield on Nigeria’s debt instruments are expected to slow down.

However, there are signs that the ease in the Forex market might be pushing investors towards equities. In the last three days, there has been a rally on the Nigerian Stock Exchange as investors went a bullish trend.

The Nigerian Bureau of Statistics is also expected to send in the first quarter gross domestic product, GDP report. When you combine this with the MPC meeting that might see a cut in interest rates; the debt market is expected to witness less pressure from investors.