By Boluwatife Oshadiya | April 8, 2026
Key Points
- Average FGN bond yield rises marginally to 15.79% week-on-week
- Mid-tenor instruments see strongest sell pressure, yields jump up to 34bps
- Investor demand persists at long end amid yield-lock strategy
Main Story
The average yield on Federal Government of Nigeria (FGN) bonds edged higher to 15.79% last week as mild selloffs in the secondary market triggered portfolio adjustments across key maturities.
According to Afrinvest Securities Limited, trading activity reflected mixed sentiment, with investors selectively repositioning across the curve in response to recent primary market signals and liquidity considerations.
At the short end, yields declined slightly by one basis point to 16.13%, indicating sustained preference for shorter-duration instruments with stronger liquidity buffers. However, the mid-tenor segment recorded notable upward pressure, with yields climbing 14 basis points to 16.38%. Specifically, the FGN 15-MAY-2033 and 21-JUN-2033 bonds saw yield increases of 34bps and 29bps respectively.
Market analysts attribute the mid-curve weakness to profit-taking and reaction to the Debt Management Office’s (DMO) March bond auction, where ₦750 billion was offered across reopened 2030, 2032, and 2033 instruments.
At the long end, yields declined by three basis points to 14.77%, supported by renewed investor appetite for duration. The FGN 21-JAN-2042 bond recorded a sharp 27bps yield contraction, suggesting institutional investors are locking in current rates amid expectations of future yield moderation.
“We are seeing a clear barbell strategy — investors are avoiding mid-tenors while concentrating on short-term liquidity and long-term yield capture,” said a fixed income analyst at Afrinvest Securities Limited.
What’s Being Said
“The mixed yield movement reflects cautious positioning ahead of future rate direction and continued sensitivity to auction outcomes,” Afrinvest Securities Limited said in its weekly fixed income note.
An independent market analyst added: “The demand at the long end suggests growing expectations that yields may peak soon, especially if inflation stabilises.”
What’s Next
- The Debt Management Office is expected to conduct its next bond auction later in April
- Investors will monitor inflation data and monetary policy signals for yield direction
- Secondary market activity likely to remain selective across maturities
The Bottom Line: Nigeria’s bond market is entering a more tactical phase, with investors increasingly segmenting exposure across the curve. The divergence between mid-tenor weakness and long-end demand signals a market recalibrating ahead of potential monetary policy shifts.
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