Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction
Nigeria’s plain vanilla bonds traded soft in the secondary market ahead of Debt Management Office, DMO, monthly auction next week. The bond market recorded limited activity, with some interest around the mid-tenors.
Offers were noted on the April 2029s, February 2031s, and May 2033s, but few trades were executed due to wide bid-ask spreads, according to AIICO Capital Limited. Selloffs were observed at the mid (+6bps) segment of the curve, specifically JUN-33 (+29bps) and FEB-34 (+35bps).
Fixed income market investors treaded cautiously amid the prevailing bearish sentiment. Faced with liquidity constraints, market participants offloaded their positions decently across the yield curve.
Short and mid-term maturities, particularly Apr-29 (+10bps) and Apr-37 (+7bps) bore the brunt of the sell-off, while at the long end, Jun53 closed at an offered yield of 17.00%. Overall, the average yield inched upwards by 1bp to settle at 18.61%.
On Monday, the Nigeria’s debt office will offer N300 billion worth of FGN bonds for subscription at the primary market. This will be the last auction sales for the first quarter of 2025, a part of efforts to support budget deficit with local borrowings. #Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction US Recession Looms for First Half of 2025 – CEO
