DMO Opens N800bn FGN Bonds for Subscription
The Debt Management Office (DMO) is set to open N800 billion worth of Federal Government of Nigeria (FGN) bonds for subscription on Monday.
The monthly auction is expected to boost supply amidst subdued trading activities in the secondary market and fluctuating yields.
The authority reopened the 17.95% FGN JUN 2032, totalling N400 billion, 19.89% FGN MAY 2033, worth N300 billion, and 19.00% FGN FEB 2034, with an offer size of N100 billion.
Last week, the bond market traded with a bullish bias amid improved investor sentiment and lower-than-expected consumer price index data, which spurred buying activity—especially in the belly of the curve.
Early in the week, selective demand emerged following the release of the Jan-26 inflation data (15.10% y/y), strengthening expectations of a gradual rate cut and triggering mild downward adjustments in yields across key mid-tenor securities.
Momentum picked up midweek, with strong demand observed for the FGN 2033, 2034, and 2032 maturities, leading to notable yield compression amid sustained investor appetite.
However, trading remained largely selective as market participants assessed the DMO’s February bond offer circular, which announced an auction of ₦800 billion, leading to periods of cautious positioning.
By the end of the week, activity became mixed but retained a modest bullish undertone, as investors rebalanced portfolios and positioned ahead of the auction.
Demand continued to concentrate in the short- to mid-tenor segment, with the FGN 2032 attracting particular interest and repricing lower to close at 16.00%.
Overall turnover was light, reflecting a cautious, wait-and-see approach. Consequently, the average benchmark yield declined by 7bps week on week to close at 15.92%. Jaiz Bank Gains 33%, Insiders Interest Drops to 80.33%
