DMO to Open N1.1trn in FGN Bonds for Subscriptions
Nigeria’s Debt Management Office (DMO) is set to offer N1.10 trillion worth of FGN bond maturities at the primary market auction on Monday for subscriptions.
The monthly bonds auction offer includes a N250 billion reopening of the 10-year bond maturing in January 2035, a N100 billion reopening of the 20-year bond maturing in April 2037, and a N750 billion reopening of the 15-year bond maturing in June 2038.
The auction structure places significant emphasis on the 15-year maturity, which accounts for 68.2% of the total offer, while the 10-year and 20-year bonds account for 22.7% and 9.1%, respectively.
The market anticipates an upward adjustment to spot rates, in line with recent repricing at the Treasury bills auction, though this is anticipated to have less influence than the inflation figure.
In the secondary market, trading in government bonds was bearish, driven by weak investor demand across key maturities. The subdued buying interest led to a depreciation in bond prices and a corresponding increase in yields.
This dynamic reflects cautious investor sentiment toward domestic fixed-income instruments. Fixed-income market analysts said activity was concentrated in the mid segment, with mild sell-offs driving higher yields across select maturities.
Consequently, the average yield on Nigerian government bonds edged higher by 13 basis points week-on-week to close at 17.13%. CBN Hikes Interest Rate on 364-Day Treasury Bill to 17.59%
