DMO to Open N1.75trn Nigerian Govt. Bonds for Subscription
Debt Management Office (DMO) is scheduled to open N1.75 trillion worth of Federal Government of Nigeria (FGN) bonds for investor subscription on Monday.
The DMO targets a large amount at its monthly auction, first in the fourth quarter of 2026, as part of a broader debt plan to finance the government budget deficit.
The main auction will feature the reopening of the February 2034 and September 2036 10-year bonds, as well as the June 2038 15-year bond.
The auction could influence investor demand and yield movements in the secondary market, while the Eurobond market may sustain its positive momentum if offshore investor appetite remains strong.
Investor demand is expected to remain strong, with the market anticipating continued repricing of spot rates on naira assets following sustained disinflation.
In the secondary market last week, the FGN bond faced sell pressure over sustained bearish sentiment. Nigerian bond yields rose across most of the curve, led by the 10-year, which was up 51bps to 16.94%.
The yield on the 7-year FGN bond rose 27bps to 17.03%, the 5-year papers saw a 10bps yield surge to 16.80%, and the 20-year rose 8bps to 14.77%, while the 3-year was unchanged at 16.61%, according to AIICO Capita Limited.
The average yield across the five bonds rose by about 19bps to 16.43%. Year to date, the 20-year is up the most, at 57 bps, while the 10-year is down 13 bps. Nigeria Rules Out Return to Fuel Subsidy, Multiple Exchange Rates
