The Federal Government of Nigeria (FGN) bond secondary market wrapped up Thursday’s session with minimal movement as trading activity remained subdued. Market participants maintained a cautious stance ahead of a projected N7 trillion debt capital market expansion in 2025.
A slight selloff of the January 2026 bond pushed its yield up by 2 basis points (bps), causing a marginal increase of 1bp at the short end of the benchmark curve. However, yields at the mid and long segments remained flat, reflecting a largely steady market sentiment.
Modest trading volumes were observed in the mid-segment, where buying interest focused on the May 2033 and February 2034 bonds.
These securities recorded slight yield declines of 1bp and 3bps, respectively, to close at 20.60% and 20.65%, according to TrustBanc. Despite this activity, the overall average yield across the benchmark curve closed unchanged at 19.03%.
Analysts noted moderate interest in the February 2031 and May 2033 papers, with a few trades executed in the mid-curve segment. However, this limited activity failed to alter the broader market dynamics significantly.
Market watchers expect the current cautious sentiment to persist in the next trading session, as investors weigh potential developments in the debt market against the backdrop of tightening bond supplies following earlier frontloading by the Debt Management Office.
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