Strong demand for long-term government securities sees the DMO receive bids far above the ₦1.2 trillion on offer, with the April 2037 bond emerging as investors’ top choice…..
Investors showed strong appetite for Federal Government securities at the Debt Management Office’s (DMO) July 2026 bond auction, submitting bids worth ₦1.74 trillion against the ₦1.2 trillion offered across three reopened bond instruments.
The auction results, released on Tuesday, showed that subscriptions exceeded the amount on offer by more than ₦538.66 billion, highlighting sustained demand for long-term government debt despite prevailing market conditions.
The DMO reopened three existing Federal Government bonds the 22.60% FGN January 2035, 16.2499% FGN April 2037 and 15.45% FGN June 2038 issues with ₦400 billion offered under each instrument.
Among the three, the April 2037 bond emerged as the most sought-after, attracting 211 bids with a total subscription value of ₦665.19 billion. Following the evaluation process, the DMO accepted 126 bids and allotted ₦381.46 billion to successful investors.
The January 2035 bond also recorded significant demand, receiving 184 bids worth ₦555.47 billion. Of these, 90 bids were successful, resulting in an allotment of ₦245.73 billion.
Meanwhile, the June 2038 bond attracted 161 bids valued at ₦518 billion. The DMO approved 92 successful bids worth ₦302.13 billion and also accommodated a ₦50 billion non-competitive bid under the instrument.
In total, the DMO allotted ₦929.32 billion across the three bond offerings.
Successful bids cleared at marginal rates of 18.34 per cent for the January 2035 bond, 18.35 per cent for the April 2037 bond and 18.40 per cent for the June 2038 bond. However, the original coupon rates of 22.60 per cent, 16.2499 per cent and 15.45 per cent respectively will remain unchanged.
Settlement for the successful bids is scheduled for July 22, 2026.
Following the reopening, the January 2035 bond now has a remaining maturity of eight years and six months, while the April 2037 and June 2038 bonds have outstanding tenors of 10 years and nine months, and 11 years and 11 months, respectively.
Federal Government bonds are long-term debt instruments issued by the DMO on behalf of the Federal Government to finance budget deficits and infrastructure projects. They also provide investors with relatively secure fixed-income investment opportunities.
The monthly bond auctions remain a key barometer for assessing liquidity in Nigeria’s financial markets, investor sentiment and expectations around interest rates.
