Nigerian government bonds plunged in the secondary market mid-week following monthly auctions by the Debt Management Office (DMO).
The Nigerian Debt Authority has sold old and new bonds to market participants, raising more than N427 billion in addition to the N46 billion allocated to uncompetitive bids.
As a result, the market price of FGN bonds remained relatively stable across most maturities. The average yield in the secondary market has fallen to 13.49%, according to Cowley Asset Management Limited, due in particular to an increase in willingness to buy medium-term bonds.
The investment firm said yields on benchmark 10-, 20- and 30-year FGN bonds were stable at 14.23%, 15.35% and 15.60% respectively. Elsewhere, FGN Eurobond values ended lower as bearish sentiment persisted across all tracked maturities.
As a result, the average secondary market yield continued to rise to 11.33%. Cordros Capital told investors in a market note that the average short-term (+7 basis points) and long-term (+7 basis points) yields on the benchmark curve have risen.
The rise was due to profit taking on the January 2026 bond (+35 basis points) and his June 2053 bond (+1612 basis points). Conversely, the mid-segment average yield (-185 basis points) fell due to purchase interest in the July 2030 bonds (-523 basis points).
