Yields on Nigerian government bonds closed largely steady in the secondary market, with mixed movements recorded across the yield curve as investors remained cautious ahead of anticipated debt supply in the first quarter of 2026.
Market sentiment remained subdued following the December monthly bond auction, with participants adopting a wait-and-see approach amid expectations of increased domestic borrowing by the federal government. Analysts anticipate a heavier issuance calendar in 2026 as fiscal pressures mount and the budget deficit widens against a backdrop of constrained revenue performance.
Traders remained cautious, balancing recent spot rate repricing signals, easing inflation trends, and the possibility of monetary policy adjustments in early 2026.
On the short end of the curve, the 22-Jan-2026 bond recorded a marginal yield decline of one basis point, closing at 18.60%. In contrast, the 20-Mar-2026 paper experienced a sell-off that pushed yields higher by eight basis points to 16.69%.
Activity at the mid-section of the curve was relatively muted. Mild sell-offs in the 23-Feb-2028 and 22-May-2029 bonds resulted in yield increases of one basis point each, bringing them to 16.94% and 17.02%, respectively.
At the long end, trading remained thin, with most instruments closing unchanged. However, slight selling pressure on the 18-Jul-2034 and 27-Mar-2035 bonds nudged yields up by one basis point each to 16.88% and 16.77%.
Overall, the average benchmark yield settled unchanged at 16.70%, reflecting balanced demand and supply dynamics across the curve.
Trading volumes have remained constrained following the December Debt Management Office auction, where ₦596.47 billion was allotted across the FGN 2030 and 2032 bonds at marginal rates of 17.20% and 17.30%, representing increases of 130 basis points on both tenors.
