SAT NOV 01 2025-theGBJournal| The FGN bond secondary market activity reflected mixed sentiment, driven by month-end portfolio rebalancing and selloffs by investors in anticipation of the primary market auction.
Accordingly, the average yield advanced by 2bps w/w to 15.9%. Across the curve, the average yield increased at the short (+2bps) and mid (+12bps) segments following selloffs of the JAN-2026 (+37bps) and JUN-2033 (+42bps) bonds, respectively, while it closed flat at the long end.
At Monday’s auction, the Debt Management Office (DMO) reopened the AUG-2030 and JUN-2032 bonds with a total offer size amounting to N260.00 billion.
Despite robust subscription (N1.06 trillion; bid-to-offer: 4.1x), the DMO allotted N313.79 billion (bid-to-cover: 3.4x), setting stop rates at 15.83% (Previously: 16.00%) and 15.85% (Previously: 16.20%), respectively.
We expect the liquidity influx into the system next week to drive demand for bonds, causing yields to taper slightly.
Bearish sentiments prevailed in the Treasury Bills secondary market as both local and offshore investors offloaded positions, with large offers particularly seen in the OMO segment.
Thus, the average yield across all instruments increased by 24bps w/w to 19.6%. By segment, NTB yields increased by 2bps to 17.5%, while OMO yields advanced by 50bps to 22.1%.
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