Investors showed strong demand for Federal Government securities in July, subscribing ₦1.74 trillion at the latest bond auction conducted by the Debt Management Office (DMO), well above the ₦1.2 trillion offered across three reopened bond instruments.
Auction results released by the DMO showed that subscriptions exceeded the offer by about ₦538.66 billion, highlighting sustained investor appetite for government debt securities.
The auction featured the reopening of the 22.60% FGN JAN 2035, 16.2499% FGN APR 2037, and 15.45% FGN JUN 2038 bonds, with ₦400 billion offered under each instrument.
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The 16.2499% FGN APR 2037 bond attracted the highest demand, receiving 211 bids worth ₦665.19 billion. Of these, 126 bids were successful, with ₦381.46 billion allotted.
The 22.60% FGN JAN 2035 bond received 184 bids valued at ₦555.47 billion, while the DMO accepted 90 successful bids and allotted ₦245.73 billion.
The 15.45% FGN JUN 2038 bond attracted 161 bids worth ₦518 billion. The DMO accepted 92 successful bids, allotted ₦302.13 billion, and recorded an additional ₦50 billion through a non-competitive allotment.
Overall, the DMO allotted ₦929.32 billion across the three bond instruments.
Successful bids were allotted at marginal rates of 18.34 per cent, 18.35 per cent, and 18.40 per cent for the January 2035, April 2037 and June 2038 bonds, respectively, while their original coupon rates remain unchanged.
Settlement for the auction is scheduled for July 22, 2026.
The January 2035 bond has a remaining maturity of eight years and six months, while the April 2037 and June 2038 bonds mature in 10 years and nine months and 11 years and 11 months, respectively.
Federal Government bonds are long-term debt instruments issued by the DMO to finance budget deficits, infrastructure projects and other government obligations, while providing investors with fixed-income investment opportunities.
The monthly auctions are closely watched by investors and analysts as indicators of market liquidity, investor confidence and interest rate expectations.
