The yield on Nigerian government benchmark bonds saw a moderate decline, driven by heightened interest in naira-denominated assets in the secondary market following the recent monthly auction conducted by the Debt Management Office (DMO).
Trading remained relatively constrained, though mild bullish activity emerged at the short end of the yield curve, dropping by 2 basis points. Notably, strong bidding was recorded for the JAN 2026 and MAR 2026 maturities, with yields falling by 11 bps and 17 bps, respectively.
The surge in trading came in the wake of the latest bond auction, in which the DMO issued a total of ₦300 billion—split between ₦100 billion in April 2029 bonds and ₦200 billion in May 2033 notes.
According to figures released by the DMO, investor interest far outpaced available offerings, with a subscription volume of ₦436.41 billion compared to the ₦300.69 billion eventually allotted.
Due to this oversubscription, stop rates dipped slightly, settling at 18.98% (a drop of 2 basis points) for the 2029s and 19.849% (a decline of 14.10 bps) for the 2033s, as excess demand spilled into the secondary market.
Analysts observed that the 2033 and 2034 instruments drew the highest volumes of trading, while the 2029 bond saw limited bids. Consequently, the benchmark mid-yield dropped by 6 basis points to close at 18.67%.
Across the yield curve, Cordros Capital Limited reported a contraction at the short end by 2 basis points, attributing the shift to intensified demand for the JAN-2026 bond. Mid and long-term segments of the curve, however, remained stable with no significant yield changes.
