Nigerian Bonds Yield Rises to 20.75% Ahead of First Auction
The Nigerian bonds benchmark yield rose to 20.72% in the secondary market over sustained sell pressures ahead of the Debt Management Office primary market auction on Monday.
Local bonds market participants continued to aggressively offload securities in anticipation of higher yields at the auction. Hence, the average yield increased by 65 basis points to 20.70%, Cordros Capital Limited told investors in a note ahead of first supply in 2025.
Across the benchmark curve, the average yield increased at the short (+87bps), mid (+27bps), and long (+92bps) segments, according to Cordros Capital Limited. The yield surge was a result of selloffs of the JAN-2026 (+249 bps), APR-2032 (+81 bps), and MAR-2035 (+189 bps) bonds, respectively.
Fixed income market analysts at Cordros Capital Limited believe the direction of yields in the secondary market will be shaped by the outcome of this month’s FGN bond auction holding on Monday (27 January).
At the auction, the DMO is set to offer instruments worth N450.00 billion through re-openings of the APR-2029 and FEB-2031 bonds, as well as a new JAN-2035 issue. April 2029 bond worth ₦100 billion, February 2031 bonds worth ₦150 billion, and January 2035 papers worth ₦200 billion will be opened for subscription on Monday
Last week, the market witnessed trading activities across the short-end (-12bps), mid-segment (-3bps), and long-end (-6bps) of the yield curve. Building on the pattern observed early in the year, the market commenced the week on a quiet yet bearish note with liquidity dearth suppressing buy-side activities across the benchmark curve, investment firms said.
However, as the week progressed, buying interest reemerged, particularly on the auction bond papers. Fixed income market analysts said they spotted selling interest, particularly in the February 2031 bond, with offers around 22.30%-22.50%. $9.6bn P&ID Scam: I’ve No Witness to Call, Briton Tells Court
