- As Nigerian Local Bonds thrives on Bullish Sentiment While Eurobonds Retreat
BY BONNY AMADI
In the week ended February 27, Nigerian Government’s February 2026 FGN bond auction conducted by the Debt Management Office (DMO) saw N800 billion offered across the Feb 2032, May 2033, and Feb 2034 maturities.
However, the auction was significantly oversubscribed at N2.7 trillion, remarkably, the final allotment was relatively conservative at N524 billion.
Stop rates for the Feb 2032 and May 2033 papers closed at 15.74 per cent, while the Feb 2034 bond cleared slightly lower at 15.50 per cent, underscoring strong demand for duration amid easing policy expectations.
Meanwhile, the Nigerian secondary bond market closed the week on a positive note, supported by strong demand across most maturities.
Trading activity remained robust, underscoring sustained investor confidence and a heightened appetite for local fixed-income instruments despite existing market uncertainties.
As a result, yields eased, with the average yield declining by 48 basis points to 15.54%, reflecting solid demand for government securities.
Conversely, the Nigerian sovereign Eurobond market recorded a negative performance, pressured by increased selling activity across the curve. Average yields rose by 9 basis points to 6.98%, pointing to weaker investor sentiment and reduced appetite for Nigeria’s dollar-denominated debt.
It is expected that the Nigerian secondary bond market will maintain a stable to slightly bullish trajectory in the near term, supported by sustained local investor interest and demand for fixed-income securities amid ongoing economic uncertainties.
However, the sovereign Eurobond market may continue to face pressure, as weak appetite from international investors and heightened selling activity could keep yields elevated. Monitoring global risk sentiment, foreign portfolio flows, and domestic macroeconomic indicators will be key
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