DMO to Auction N460 billion Reopen Bonds for Subscriptions
Nigeria’s Debt Management Office (DMO) is set to open its final local bond offering across two reopenings for investors’ subscription on Monday, according to a circular reviewed by MarketForces Africa.
The Debt Office’s final auction for 2025 will be held on 15 December, with plans to offer N230.00 billion apiece for the AUG-2030 and JUN-2032 maturities.
The market is not anticipating any surprises despite a two-times increase in the spot rate for Nigerian Treasury bills with 364 days maturity priced at 17.95% last week from 16.04% at the beginning of the month.
The higher rate on one year Nigerian treasury bills triggered selloffs in the fixed income market, with most of the short-term, mid-term instruments and local bonds becoming investors’ profit-taking casualties.
Ahead of the bond auction, the secondary market for Nigerian government bonds closed the week bearish with significant sell pressures across the belly of the curve.
Fixed income market analysts at Anchoria Securities Limited reported that average yield expanded by +99 basis points to close at 16.63% compared to 15.64% recorded in the previous week.
Transactions in the market were concentrated on the Short (+102 bps) and mid (+140 bps) end of the curve, while activities at the Long-end of the curve were muted during the week.
Notably, the 21-Feb-2034 and 18-Jul-2034 bonds saw significant upticks of +164 bps and +152 bps, respectively. Analysts expect unmet demand in next week’s auction to filter into the secondary market.
Beating Inflation With Fixed-Income Instruments
