Bonds are bought through brokers or market makers in the primary and secondary markets.

In the Primary Market: When a government issues bonds, it does so through FGN Bonds Auctions exercise in the Primary Debt Market. This auction is carried out monthly via a debt management agency known as Debt Management Office (DMO) and Primary Dealer Market Makers (PDMMs) – These are banks appointed by the DMO to act as authorized dealers in FGN bonds. PDMMs submit bids for themselves and on behalf of their clients at the Auctions.

OR

In the Secondary Market: Investors interested in buying government instrument can do so in second the secondary debt market – also known as over the counter (OTC) market – where trading is done daily by licensed broker-dealers (banks and stockbrokers) on the floor of The Nigeria Securities Exchange (NSE) and on FMDQ OTC Securities Exchange. Parthian Partners is a licensed interdealer broker-dealer on the floor of NSE and FMDQ OTC Exchange. Meaning that the facilitates trades among the broker-dealers who buy and sell these bonds in large volumes.

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