Debt Office to Auction N900 Billion Reopened FGN Bonds
The Debt Management Office (DMO) has announced a plan to auction N900 billion worth of reopened Federal Government of Nigeria (FGN) bonds at its monthly primary market auction next week.
Inflation and liquidity level in the financial system are expected to dictate investors’ subscriptions, though spot rates adjustments top market expectations, investment analysts told MarketForces Africa.
The DMO’s local borrowing is expected to increase in 2026 as the budget deficit surged, with some analysts thinking a Eurobond raise may be a tight and expensive move for the authority in the first quarter of the year.
Following the release of the January bond circular, which announced an offer of N900.00 billion through the reopenings of the Feb 2031 (5-yr), Feb 2034 (7-yr) and Jan 2035 (7-yr) instruments, proceedings in the secondary market was relatively quiet.
The bonds’ secondary market closed with a bearish tilt as the average benchmark yield expanded by +1bp to close at 16.74% – reflecting subdued local investor sentiment toward domestic fixed-income securities.
Trading activities were focused on the short-mid tenor of the curve, while the long end traded quietly. At the short end, mild selling pressure pushed yields on the 17-Mar-27 and 17-Apr-29 up by 1 bp and 7 bps to 16.97% and 17.26%, respectively.
Investment firm reported that mid-curve trading was mixed, as a 12 bps rise in 2033 local bond, which was partly offset by a 7 bps decline in the 2032 FGN Bond.
Analysts expect this trend to continue in the near term ahead of January’s bond auction. Overall, supply and demand dynamics are expected to drive yield movements. CBN Sells N2.6tn OMO Bill to Investors at 19.39% for 245-Day
