Analysts at Afrinvest said they anticipated sustained interest from both foreign and domestic investors amid system liquidity.

“As a result, we expect further compression in yields especially medium to long-term maturities, except CBN ramps up the frequency of OMO auction,” they added.

In the bonds market, sell-off across all tenors was witnessed in the FGN bonds space as local investors booked profit and foreign inflows softened.

Average yield across FGN bonds advanced by 30bps week-on-week to close at 14.3 per cent from 14 per cent in the previous week.

The FGN 2028 bonds witnessed most sell-offs, up by 45bps week-on-week.

Analysts at Afrinvest advised investors to take advantage of bonds that declined last week and be guided by the CBN’s primary market auctions as further rate moderation might spur demand on short-term bonds.