DMO Slashes 2029 Bond Rate Amid Investor Rush

At its latest auction, the Debt Management Office (DMO) reduced the interest rate on Nigerian bonds maturing in April 2029 due to a surge in investor demand.

The DMO offered ₦100 billion in bonds—split evenly between a reopened 5-year bond and a new 7-year issue—and received overwhelming bids totalling ₦602.86 billion. This strong appetite allowed the office to lower the spot rate on the 5-year reopening by 123 basis points to 17.75%.

AAG Capital Limited noted a robust investor preference for longer-dated instruments, with the new issue garnering a bid-to-cover ratio of 11.2x and clearing at 17.95%. The DMO eventually allotted ₦98.95 billion from the new 7-year bonds.

While the reopened April 2029 bond received subscriptions totalling ₦41.49 billion—below the ₦50 billion on offer—it still reflected sustained, albeit cautious, interest from market participants.

Meanwhile, in the secondary market, activity remained tepid post-auction, with selective trades in the 2029s, 2031s, 2033s, and 2053s. Average yields declined by 14 basis points to 18.10%, with May 2033 bonds trading between 18.45% and 18.60%.