FRI MAY 01 2026-theGBJournal| The FGN bond secondary market closed on a bearish note, with the average yield expanding by 5bps to 16.1%, as offshore participation was muted during the week amidst sustained local supply.
Across the benchmark curve, the average yield contracted at the short (-9bps) end driven by demand for the MAR-2027 (-21bps) bond.
Conversely, the average yield expanded at the mid (+5bps) segment, driven by selloffs of the JAN-2035 (+65bps) bond, while the long end closed flat. At Monday’s bond auction, the DMO reopened the AUG-2030, JUN-2032 and JAN-2035 bonds, offering a total of N700.00 billion.
Total demand settled at N948.01 billion, with the DMO eventually allotting N276.79 billion. The stop rate on the AUG-2030 and JUN-2032, which were on-the-run last month, expanded by 30bps and 35bps to 16.30% and 16.50% respectively. While the stop rate on the JAN-2035 printed 16.59%.
Meanwhile, the Treasury Bills secondary market traded on a bullish note with average yields contracting by 5bps to 18.9%, 5bps
Across segments, the NTB secondary market closed broadly flat as investors remained on the sidelines ahead of Wednesday’s NTB auction. Conversely, yields in the OMO secondary market contracted by 3bps to 21.1% as unmet bids at the OMO auction held during the week were redirected to the secondary market.
At Tuesday’s OMO auction, the CBN offered NGN600.00 billion across the 7-, 105-, and 140-day tenors, attracting strong demand with total subscriptions of NGN1.78 trillion.
The CBN subsequently allotted N1.74 trillion across the tenors at stop rates of 21.90%, 19.85%, and 19.91%, respectively.
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