Nigeria’s bond auction for February 2025 attracted massive interest, with total subscriptions soaring to ₦1.63 trillion. This is a huge jump from January’s ₦670.94 billion, showing strong investor confidence in government securities.
The Federal Government offered three bond maturities – 2029, 2033, and 2038 – at the auction. Analysts believe high demand could be due to attractive yields and a stable economic outlook.
Market Response and What’s Next
Traders at Access Bank expect the market to remain calm following the auction. They believe the settlement process will reduce liquidity, keeping things stable.
“We expect some tightening in the money market due to the bond settlement,” said Ademola Osuntoki, Treasury Team Lead at Access Bank.
Despite this, investor confidence remains strong, with many seeing bonds as a safe option amid economic uncertainties.
Financial experts predict further bond issuance this year as the government seeks to fund infrastructure and reduce borrowing pressure.
Would bond yields remain attractive? Will liquidity constraints affect short-term investments? The coming weeks will reveal more.
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