DMO to Offer N2trn in Nigeria Bonds as Benchmark Yield Eases
The Debt Management Office (DMO) is scheduled to open the Federal Government of Nigeria (FGN) bonds totalling N2 trillion for investors to subscribe at its November primary market auction on Monday.
The monthly auction will re-open 2028 Federal Government of Nigeria bonds programmed to expire in Mar 2028, April 2029, August 2030 and May 2033.
The auction, which coincides with the release of October inflation figures, is expected to be the week’s defining event for the fixed-income market, investment firm Cowry Asset Management Limited said in a commentary note.
Broadstreet investment experts expect demand to remain strong, with inflation and liquidity conditions in focus, without a broadly agreed market consensus on spot-rate pricing.
“We anticipate robust investor participation, supported by the sizeable liquidity buffer in the banking system and continued interest in locking in attractive yields”, Cowry Asset Limited told investors in a note.
The investment firm said the inflation outcome could influence bidding strategies and investors’ yield expectations, particularly as market participants assess the direction of monetary policy and the potential implications for fixed-income returns
In the secondary market, trading activities on local borrowing papers were positive in the just concluded week with buying interest across the curve.
Fixed income securities analysts reported that renewed demand from local investors supported price appreciation across the FGN bond curve, with yield contractions at the mid- and long-term segments more than offsetting a 6bps expansion at the short end.
Consequently, the average secondary market yield declined by 9bps week-on-week to 16.25%, reflecting sustained appetite for domestic fixed-income assets amid relatively comfortable system liquidity. Oyedele Defends Nigeria’s $21.7 Billion Borrowing Proposal
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