SAT AUG 02 2025-theGBJournal|The FGN bond secondary market was quiet this week, with a bearish undertone, as offers improved on the back of higher-than-expected auction issuance.
Profit-taking activities from traders and subdued demand from portfolio managers further supported market sentiments.
Accordingly, the average yield for bonds increased by 14bps to 16.4% by close trading on Friday. Across the benchmark curve, the average yield increased at the short (+8bps), mid (+34bps), and long (+3bps) segments, driven by selloffs of the JAN-2026 (+73bps), FEB-2031 (+59bps), and JUN-2053 (+35bps) bonds, respectively.
At Monday’s PMA, the Debt Management Office (DMO) offered instruments worth N80.00 billion to investors through the re-opening of the 19.30% FGN APR 2029 (Bid-to-offer: 2.0x; Stop rate: 15.69%) and 17.95% FGN JUN 2032 (Bid-to-offer: 2.9x; Stop rate: 15.90%) bonds.
Total subscription level settled at N211.58 billion (previous: N602.86 billion), with a bid-to-offer ratio of 2.6x (previous: 6.0x). Eventually, the DMO allotted N185.93 billion across the two tenors, resulting in a bid-to-cover ratio of 1.1x.
Overall, a total of 1.360 million units valued at N1.118 billion were traded this week in 30 deals compared with a total of 33,209 units valued at N32.134 million transacted last week in 38 deals.
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