By Boluwatife Oshadiya | March 30, 2026
Key Points
- DMO offers N750 billion in reopened FGN bonds across three tenors
- Auction includes 2030, 2032, and 2033 maturities
- Analysts expect higher yields amid global risk-off sentiment
Main Story
Nigeria’s Debt Management Office (DMO) is set to conduct its monthly Federal Government bond auction today, offering a total of N750 billion across three reopened instruments as the government seeks to raise fresh domestic financing.
The auction includes the 17.945% FGN AUG 2030 bond, the 17.95% FGN JUN 2032 bond, and the 19.89% FGN MAY 2033 bond. The issuance comprises N250 billion in five-year bonds, N200 billion in seven-year notes, and N300 billion in 10-year instruments.
Market participants anticipate upward pressure on yields, reflecting heightened global risk aversion driven by geopolitical tensions in the Middle East. Investment firm AAG Capital noted that prevailing uncertainty across asset classes could influence investor demand and pricing dynamics.
In the secondary market, trading activity last week was concentrated in mid-tenor instruments, particularly the 2031 and 2032 bonds, which saw sustained demand from investors seeking balanced risk-return exposure.
Despite cautious sentiment, average bond yields declined by 19 basis points week-on-week to 15.78%, indicating modest improvement in investor appetite, particularly within mid-range maturities.
What’s Being Said
“Bond yields are expected to be higher at today’s auction as risk-off sentiment persists across asset classes due to the prolonged crisis in the Middle East,” AAG Capital stated in a market note.
“Actual cut-off rates will depend on the issuer’s preferred funding cost at this time,” the firm added, highlighting uncertainty around final pricing.
What’s Next
- Results of the bond auction, including cut-off yields, are expected later today
- Investors will assess demand levels to gauge market confidence in government securities
- Future auctions may reflect evolving global risk sentiment and domestic liquidity conditions
The Bottom Line:
Nigeria’s bond market is navigating a delicate balance between domestic demand and global uncertainty. While investor interest remains steady, rising geopolitical risks could push borrowing costs higher in the near term.
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