Nigeria's fixed income space review
Nigeria's debt management office says it issued more bonds than originally planned at an auction after February's slowing inflation rate helped it offer debt at lower yields. Oluwaseun Ameye, fixed income dealer at Citibank joins CNBC Africa for an update on the fixed income space.
Thu, 16 Mar 2017 14:11:56 GMT
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AI Generated Summary
- Increased bond issuance at recent auction attributed to declining inflation rates and lower yields
- Strong demand for treasury bills and bonds reflects growing interest in fixed income investments
- Investors, including individual and traditional investors, are focusing on long-term bonds for potential real returns
Nigeria's Debt Management Office has reported issuing more bonds than initially planned at a recent auction, following a decrease in February's inflation rate that allowed for lower yield offerings. This development has sparked interest and activity in the country's fixed income space, with investors showing strong demand for treasury bills and bonds. Wolu Aishionw, a fixed income dealer at Citibank, provided insight into the current state of affairs in the fixed income market during a recent interview on CNBC Africa. Aishionw highlighted the growing interest from both individual and traditional investors, such as banks, in long-term bonds, driven by expectations of declining inflation rates and the potential for real returns on their investments over time. The segment of the market targeting savings bonds, with slightly lower coupon rates compared to the NPR and inflation rates, remains an attractive option for investors looking to secure their funds. Overall, the outlook for Nigeria's fixed income market appears positive, with continued investor interest and favorable conditions contributing to a promising investment landscape.
