Nigerian govt’s 5-year bond yield falls by 2% after CBN’s lending rate cut

invalid@example.com (Simonson Harry), Simonson Harry
Sun, 31 May 2020 07:15:10 +0000
Bonds

Yield on Nigerian government’s five-year bond shrank by 200 basis points or 2% on Friday with returns falling across maturities after the Central Bank of Nigeria made a surprise announcement Thursday, bringing down benchmark lending rate to ramp up economic growth, traders told Reuters.

Rising from the 273rd session of its Monetary Policy Committee two days back, the apex bank reduced the interest rate from 13.5% to 12.5%, causing bond yields to drop.

The most liquid 5-year paper crashed...