FGN Bonds Yields Spike on investor Sell-Offs

• As Eurobonds Gain on Improved Sentiment

The Nigerian secondary bond market closed last week in bearish territory, as sustained sell-offs across most maturities dampened market performance.

Trading activity remained weak, reflecting subdued investor sentiment and limited appetite for local fixed-income assets amid prevailing market uncertainties. Consequently, yields trended higher, with the average yield rising by 2 basis points to 16.90%, underscoring continued caution toward government securities.

In contrast, the Nigerian sovereign Eurobond market posted a positive performance during the week. Average yields declined by 6 basis points week-on-week to 7.05%, driven by improved investor demand. The rally was supported by strengthening confidence in Nigeria’s external debt, underpinned by relatively favourable macroeconomic conditions and expectations of sustained fiscal discipline.

In the new week, the Debt Management Office (DMO) is set to auction a total of N900 billion in FGN bonds next week, including the FEB-2031 (7-year reopening), FEB-2034 (10-year reopening), and JAN-2035 (10-year reopening) issues. In contrast, the Nigerian sovereign Eurobond market is likely to remain positive, supported by sustained foreign demand.