The Debt Management Office (DMO) is preparing to raise N80 billion through the reopening of existing bonds at its upcoming primary auction, as investor appetite for fixed income assets remains robust amid easing inflationary pressures.
According to the auction notice released, the bonds to be reissued are the Federal Government of Nigeria’s (FGN) APR-2029 and JUN-2032 papers. Analysts forecast that the auction will draw strong interest, driven by persistent demand from banks, pension fund administrators, and asset managers.
The continued scaling down of bond issuance since early 2025 reflects improving fiscal revenue, supported by the removal of fuel subsidies and increased foreign borrowings. This has allowed the DMO to reduce supply, pushing spot rates downward in tandem with strong investor demand.
Market watchers from Cordros Securities project that marginal rates for the 2029 bond will fall within 15.65% to 15.95%, while the 2032 paper is expected to attract rates between 15.90% and 16.15%.
The auction comes amid renewed optimism for a dovish shift in monetary policy, with analysts maintaining a medium-term outlook for lower bond yields. The alignment of demand-supply dynamics and easing inflation is expected to sustain this trend.
“We foresee a continued moderation in spot rates given the robust demand and expectations of a more accommodative monetary stance,” Cordros noted.
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