TUE NOV 11 2025-theGBJournal| The Nigerian fixed income market traded bullish on Monday as demand remained firm and concentrated at the long end.
The treasury bills average yield fell by 4bps to 17.4%. Across the curve, the average yield contracted at the short (-2bps), mid (-2bps) and long (-7bps) segments, driven by the demand for the 87DTM (-2bps), 178DTM (-2bps) and 346DTM (-29bps) bills, respectively.
Similarly, the average yield contracted by 5bps to 22.0% in the OMO segment.
Also, the FGN bond secondary market traded on a bullish note, as the average yield contracted by 2bps to 15.7%.
Across the benchmark curve, the average yield contracted at the short (-4bps) end, driven by demand for the FEB-2031 (-16bps) bond, but remained unchanged at the mid and long segments.
Meanwhile, in the Eurobond space, Nigeria’s latest US$2.35 billion issuance—split between US$1.25 billion (10 yr – 2036) and US$1.10 billion (20 yr – 2046) tranches—was priced at 8.625% and 9.125%, respectively, and drew record orders of US$13bn, representing a 453% oversubscription.
This compares favourably with the U $2.2 billion raised in December 2024 at higher yields of 9.625% and 10.375%, which attracted about US$9 billion in bids.
The improved pricing despite longer maturities underscores stronger investor confidence in Nigeria’s credit outlook.
However, secondary Eurobond yields rose 32bps w/w to 7.97% p.a. on mild profit-taking.
With liquidity expected to remain buoyant on the back of maturing instruments and moderated borrowing activity, short-term rates are likely to stay stable.
Nonetheless, sustained OMO interventions by the CBN could exert mild upward pressure on yields this week.
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