Nigerian regulators intervene after JP Morgan bond index action

Nigeria‘s bond market regulator stepped in to avoid a market collapse on Thursday, bringing trades to a halt by forcing dealers to widen spreads after JP Morgan’s decision to remove Africa’s biggest economy from a major bond index.

Traders said the FMDQ, a group comprising Nigeria’s main commercial banks and the central bank, widened the bid-ask spreads on bond trading to 1 naira from 0.30 naira to contain volatility, helping moderate a debt market sell-off.

The yield on Nigeria’s benchmark 2024 bond moderated to 16.63 percent on Thursday from previous close of 16.68 percent.

Read more: Finance: Nigerian regulators intervene after JP Morgan index action | West Africa