SAT SEPT 27 2025-theGBJournal| The fixed income market capitalization rose 0.02% to N51.15 trillion with a total of 75,196 units valued at N73.976 million of bonds traded this week in 27 deals.
The FGN Bond average yield fell 8bps w/w to 16.5%. Across the curve, the average yield declined at the short (-1bp), mid(-13bps), and long (-1bp) segments, driven by demand for the JUL-2030 (-31bps), JUL-2034 (-42bps), and JUN-2053 (-6bps) bonds, respectively.
Analysts at Cordros Research say they believe the outcome of this month’s FGN bond auction on Monday (29 September) will largely dictate the direction of yields in the secondary market.
At the auction, the Debt Management Office (DMO) will re-open the AUG-2030 and JUN-2032 bonds, offering N120.00 billion.
While demand in the secondary market is likely to remain strong at the short- to mid-segments, supported by robust system liquidity and the recent MPR cut, we anticipate investors will sustain a cautious stance at the long end of the curve, amid persistent concerns over fiscal sustainability and heightened duration risk.
Meanwhile, the Treasury bills secondary market traded on a bullish note following Tuesday’s MPC rate cut.
Consequently, the average yield decreased by 45bps w/w to 19.8%. By segment, NTB and OMO yields declined by 49bps and 34bps to 18.0% and 21.7%, respectively.
Given our projections of a sustained liquidity surplus, augmented by the recent 50bps MPR cut, which strengthens the case for accommodative monetary conditions, we expect robust demand for bills to persist, driving yields lower.
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