Benchmark Yield Dips as Investors Bet on Nigerian Bonds
The benchmark yield on Nigerian government bonds declined as investors raised bets on the naira assets in the secondary market after the Debt Management Office (DMO) monthly auction.
Trading activities were tight with some slight bullish undertones observed at the short (-2 bps) end of the curve, as participants made bids for the JAN 2026 (-11 bps) and MAR 2026 (-17 bps) papers.
The trading session saw heightened activity following yesterday’s bond auction, where the DMO offered ₦300 billion split into ₦100 billion in April 2029s and ₦200 billion in May 2033s papers.
According to details obtained from the DMO, subscription level or investor demand exceeded supply, with ₦436.41 billion in subscriptions against ₦300.69 billion allotted.
Stop rates declined marginally, settling at 18.98% (-2 bps) for the 2029s and 19.849% (-14.10 bps) for the 2033s, as unmet auction demand spilled into secondary trading.
The 2033s and 2034s saw the most activity, though bids for the 2029s remained sparse, according to fixed income market analysts. The benchmark mid-yield ultimately fell 6 bps to close at 18.67%. Across the benchmark curve, the average yield contracted at the short (-2 bps) end, Cordros Capital Limited said in an investor note.
Fixed income market analysts said the yield contraction was driven by buying interest in the JAN-2026 (-11 bps) bond. The average yield remained unchanged at the mid and long segments. Benchmark Yield Dips as Investors Bet on Nigerian Bonds
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