By theG&BJournal
SAT FEB 21 2026-theGBJournal| Yields on Federal Government of Nigeria (FGN) bonds edged lower in the secondary market as investors repositioned ahead of Monday’s primary auction.
The slide was also in response the CBN’s decision to issue OMO bills with significantly shorter tenors of 99 days versus the prior 350-day instruments, which signalled a reduced supply of longer-duration paper and reignited appetite for duration.
The move was reinforced by a softer CPI January print, which tilted expectations toward a more accommodative policy stance and strengthened demand across the curve.
Accordingly, the average yield declined by 9bps to 16.0%.
Across the curve, the average yield increased at the short (+3bps) end following sell pressures on the FEB-2031 (+10bps) bond, while it declined at the mid (-21bps) segment driven by demand for the JUN-2033 (-36bps) bond.
Meanwhile, it remained unchanged at the long end.
Notably, the Debt Management Office (DMO) released the FGN bond calendar scheduled to hold next Monday (February 23), offering N800.00 billion across the JUN-2032, MAY-2033, and FEB-2034 bonds.
The upcoming auction by the Debt Management Office is expected to test investor appetite, particularly as the government balances domestic borrowing needs with efforts to contain debt servicing costs.
The outcome could set the tone for fixed-income trading in the days ahead, with implications for borrowing costs and broader market liquidity.
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