SAT AUG 16 2025-theGBJournal|The FGN bond secondary market turned bearish Friday after the Debt Management Office (DMO) unveiled a revised Q3 bond issuance calendar, doubling the offer size per auction to N80–NGN120 billion (previous: N40.00–N60.00 billion).
The update also introduced a new 5-year bond (AUG-2030) while removing the previously listed APR-2029 bond from the schedule.
Accordingly, the average yield expanded by 11bps to 16.6%. Across the benchmark curve, the average yield contracted at the short (-1bp) end, driven by the demand for the JAN-2026 (-6bps) bond, while it expanded at the mid (+35bps) and long (+11bps) segments following the selloffs of the APR-2032 (+63bps) and APR-2037 (+53bps) bonds, respectively.
In the coming week, improved liquidity is expected to encourage selective buying, although the larger Q3 bond issuance programme is likely to temper bullish sentiment.
”We expect a moderation in bond yields, influenced by two factors – the anticipated dovish monetary policy stance and demand and supply dynamics, ver the medium term, ” Cordros Research analysts said .
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