ABUJA - The bid-ask spreads on Nigerian bonds widened up to 15 basis points on average on Wednesday from 5 basis points before a surprise central bank rate hike on Tuesday.

The benchmark 2042 bond widened as much as 35 basis points, as yields also rose, traders said.

The central bank raised benchmark interest rate by 150 basis points to 13% on Tuesday, its first hike in more than two years, to combat rising inflation, sending markets tumbling.

Traders were waiting for a Treasury bill auction result on Wednesday which could set the direction for rates on the secondary market.

Nigeria's main share index, gained 1.24% on Wednesday, recovering from a two-week low triggered by the rate decision. The index has been rising this year as local investors pile into equities in the wake of double-digit inflation.

(Reporting by Chijioke Ohuocha, Editing by James Macharia Chege)