January 7, 2025
The Federal government bonds experienced low activity at the secondary market ahead of 2025 primary market auctions worth more than N7 trillion.
In 2025, the Debt Management Office is expected to raise local borrowing via bond issuance to investors’ to support government deficit budget.
According to marketforce Africa, some analysts are projecting that the authority will frontload in the first and second quarter of the fiscal year to raise enough money for government spending.
The bond market on Monday, saw a mixed trading session, with tepid sell orders prevailing at the near and far segments, offsetting the impact of moderate bids at the belly of the curve, AIICO Capital Limited said in a note.
READ MORE; FG Targets N120 Billion In December Bond Auction
Offers that were listed for Jan-26 (+2bps) and Jun-53 (+13bps) countered the effect of bids on Jul-34 (-5bps) maturity, the investment firm told investors in its market update.
Investment analysts at rustBanc Financial Group Limited, further revealed that offers were mostly concentrated in the short-to-mid segments of the yield curve, specifically for bonds maturing in March 2025, February 2031, and February 2034.
Consequently, the average yield closed flat at 19.78%. Fixed-income market traders added that the volume of executed transactions remained limited. Analysts said they expect the quiet disposition in the bond market to persist.
