Yields on Federal Government of Nigeria (FGN) bonds remained stable in the secondary market following the Debt Management Office’s (DMO) monthly primary market auction held earlier this week.
Activity in the secondary bond market was largely subdued, with moderate investor interest concentrated in the mid-curve segment, particularly the 2031 and 2033 maturities.
The 2031 bond was quoted at a yield of 19.60%, marking a 20 basis point decline from the previous session, while yields at the long end of the curve remained flat, according to a market update issued by CardinalStone Securities Limited.
At the close of trading, the average yield across the bond curve remained unchanged at 19.03%. Market participants maintained a steady demand for mid-tenor instruments following the recent auction, with particular attention on the April 2029, February 2031, and May 2033 maturities, which traded near prevailing market levels.
During April’s bond auction, the DMO allotted bonds worth ₦397.89 billion, surpassing its offer size of ₦350 billion. The 19.30% April 2029 instrument was sold at a marginal rate of 19.00%, while the 19.89% May 2033 bond cleared at 19.99%.
The DMO secured ₦21.12 billion from the issuance of 5-year papers and ₦376.77 billion from the 9-year instruments. On the benchmark curve, short-term yields expanded by 3 basis points due to sell-offs in the APR-2029 paper, which rose 10 basis points, while yields on the mid and long segments remained unchanged.
For the previous trading week, average yields across the benchmark curve inched up by 1 basis point to close at 19.01%. The short end saw an increase of 6 basis points to settle at 19.61%, whereas yields on the mid and long ends fell by 9 basis points and 16 basis points to close at 19.28% and 17.45%, respectively.
 bonds remained stable in the secondary market following the Debt Management Office’s (DMO)...){kind=link}