In this report, we analyze the performance of the Nigerian fixed income market in July 2023, and provide strategies that investors can employ to navigate the fixed income market in the coming months.

The FGN bond market closed the month on a negative note as average yield edged up 0.12% Month-on-Month (MoM) to 13.10%. Similarly, the Nigerian Treasury Bills Market closed the month negative, as average yield surged 0.78% MoM to close at 7.12%. Overall, the secondary Fixed Income (FI) market closed the month on a negative note as average FI yield went up by 0.45% MoM to settle at 10.11%. This is amid moderate system liquidity in July. The advancement in average yield was supported by the hawkish tone of the CBN during its July Monetary Policy Committee (MPC) meeting, as it raised its Monetary Policy Rate (MPR) further by 0.25% while also tightening the asymmetric corridor for the first time since September 2020.

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