Market Predictions

The political landscape in the United States over the next couple of months will undoubtedly have a significant impact on the cryptocurrency market, for better or worse. If events unfold without any major negative disruptions involving figures like Donald Trump or Elon Musk, the crypto community is likely to see a favourable environment. In fact, prices have surged to their highest levels since Kamala Harris conceded, signaling strong bullish momentum.

As the November FGN Bonds auction takes place today, with an offer of ₦60 billion each for April 2029 and February 2031, it seems to be a strategic development in the Nigerian debt market. Given the original range of offer of ₦80 – ₦100 each and the previous auction results, where the April 2029 bond closed at a stop rate of 20.75% and the February 2031 bond at 21.74%, there are several factors to consider regarding where these bonds might close in the current auction.

Short-term interest rates are likely to stay elevated in line with the government’s clear efforts to make the Naira an attractive currency in global terms by ensuring real returns. Although this approach may not be popular in analytical circles, it is sensible to predict based on the established policy agenda. Due to the extremely high cost of adopting this approach (with specific reference to fiscal policy), we do not foresee further elevation beyond the short end of the curve. In fact, it is expected that fiscal authorities will embrace less costly funding options for mid to long-term needs.