SAT JUNE 28 2025-theGBJournal| Proceedings in the FGN bond secondary market were bullish on Friday as investors looked to the secondary market to fill unmet bids from the PMA.
Increased liquidity aided by the inflows from coupon proceeds also supported sentiments.
Consequently, the average yield declined by 19bps to 18.4%. Across the benchmark curve, the average yield decreased at the short (-18bps), mid (-2bps), and long (-13bps) segments driven by demand for the MAR-2027 (-37bps), FEB-2031 (-33bps), and JUN-2038 (-90bps) bonds, respectively.
At Monday’s PMA, the Debt Management Office (DMO) offered instruments worth N100 billion to investors through the re-opening of the 19.30% FGN APR 2029 (Bid-to-offer: 0.8x; Stop rate: 17.75%) and issuance of a new 17.95% FGN JUN 2032 (Bid-to-offer: 11.2x; Stop rate: 17.95%) bonds.
Total subscription level settled at N602.86 billion (previous: N436.40 billion), with a bid-to-offer ratio of 6.0x (previous: 1.1x). Eventually, the DMO allotted the exact amount offered across the two tenors, resulting in a bid-to-cover ratio of 6.0x.
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