Nigeria Bond Yield Clears at 19.73% as Trades Soften
The average yield on Nigerian government bond cleared at 19.73% over subdued trading activities in the secondary market. Local bond supply has been halted as the Debt Management Office has completed bond auctions for the year.
More than N7 trillion in issuance is expected to hit the debt market in 2025 as part of efforts to partially finance the budget deficit with local borrowings. Today, the FGN bond market was quiet as the average yield steadied at 19.73% on Monday.
Across the benchmark curve, the average yield increased at the short (+2 bps) and mid (+2 bps) segments on account of moderate selldowns in naira assets. Investors showed interest in the mid- to long end of the curve, selectively pursuing attractive yields.
Trading activities were primarily focused on the new maturities for April 2029, February 2031, and April 2037, although trading volumes remained low. There were sell pressures on the JAN-2026 (+6 bps) and FEB-2031 (+4 bps) bonds, respectively.
The average yield closed flat at the long end. Last week, the bearish trend in the FGN bond market persisted, driven by sell-offs in mid-tenor bonds such as APR-29 (+1.45%), MAY-29 (+1.29%), and NOV-29 (+1.02) last week.
However, select maturities like JUN-33 (-0.32%) and FEB-34 (-0.51%) attracted buy interests, supported by recent FGN bond coupon inflows and FAAC disbursements that reduced the liquidity deficit in the money market.
As a result, average yield rose by 21 bps week on week to 19.73%. Last week, Debt Office offered ₦120.00 billion worth of instruments through the re-openings of the 19.30% APR-29 and 18.50% FEB-31 bonds.
Strong investor demand saw total subscriptions reach ₦278.82 billion, translating to a bid-to-offer ratio of 2.32x. The Debt Management Office allotted ₦211.15 billion across the two tenors.
The stop rate on the APR-29 bond rose by 14 bps to 21.14%, while the FEB-31 rate remained unchanged at 22.00%. Analysst said for the week ahead, the market is expected to adopt a mixed to bullish tone, buoyed by coupon inflows. #Nigeria Bond Yield Clears at 19.73% as Trades Soften Naira Rises as Gross External Reserves Hits 3-Year High
