Bond Market Joins Equity Rally as Federal Government Securities Advance

Nigeria’s bond market joined the broader rally on Tuesday as several Federal Government securities posted notable gains, signalling improved investor appetite across asset classes alongside the continued strength in equities.

Trading data for September 1, 2026, showed renewed buying interest in government-backed debt instruments after a relatively quiet performance in the previous trading session.

Among the day’s best performers, FGS202768 advanced 12.00 percent, rising from N85.00 to N97.00, the strongest gain among the bonds tracked during the session.

FG202033S6 followed with a 4.48 percent increase after appreciating from N107.35 to N111.84, while FG202034S2 added 1.28 percent, climbing from N106.53 to N107.82.

By contrast, FG7B2030S3 and FGB2030S3 closed unchanged at N70.50 and N109.99, respectively.

The gains represent a notable shift from August 31, when every bond included in the daily trading report closed unchanged, suggesting limited activity in the secondary bond market.

Tuesday’s price appreciation indicates investors returned to selected Federal Government securities even as equities continued their upward momentum.

The improvement in the bond market coincided with another strong session on the Nigerian Exchange (NGX).

The NGX All-Share Index (ASI) rose 0.77 percent to 246,082.63 points, while equity market capitalisation increased to N158.956 trillion.

Investors also traded 651.32 million shares worth N40.77 billion, extending the steady improvement in market liquidity that has characterised recent sessions.

The simultaneous strength in equities and government securities suggests investors were deploying capital across multiple asset classes rather than shifting funds entirely from fixed income into stocks.

That contrasts with earlier sessions, when the strongest buying activity was concentrated almost exclusively in equities, particularly banking stocks.

Another notable development was the increase in overall bond market capitalisation.

The value of listed bonds rose from N57.676 trillion on August 31 to N57.884 trillion on September 1.

The combination of rising bond prices and continued gains in equities points to improving confidence across Nigeria’s capital markets.

While banking stocks continued to dominate equity trading, the renewed demand for Federal Government securities suggests investors are broadening their exposure rather than concentrating capital in a single asset class.

Although one trading session does not establish a long-term trend, Tuesday’s performance indicates that sentiment improved beyond the equity market with both stocks and government securities attracting fresh investor interest as September opened on a positive note.