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Bond Subscriptions Surge 174% Month-on-Month
The Federal Government attracted ₦1.41 trillion in investor bids at its June 2026 bond auction, surpassing the ₦1.2tn offered, according to the Debt Management Office (DMO).
The government reopened two instruments: the 22.60% FGN January 2035 bond and the 16.2499% FGN April 2037 bond, each with ₦600bn on offer. Investors submitted ₦705.2bn for the 2035 bond and ₦708.3bn for the 2037 bond.
DMO allotted ₦1.222tn in total, with ₦600.9bn going to the 2035 bond and ₦621bn to the 2037 bond.
The auction cleared at marginal rates of 18.34% (2035) and 18.35% (2037), higher than May’s 17% and 17.04%, reflecting rising borrowing costs.
Investor participation strengthened, with 394 bids in June compared to 265 in May, and successful bids rising to 316 from 175. The longer-dated 2037 bond attracted the most demand, accounting for just over half of subscriptions.
Despite doubling the issuance target from ₦600bn in May to ₦1.2tn in June, investors absorbed the offer fully, underscoring strong appetite for government securities.
Total subscriptions jumped 173.8% month-on-month, from ₦516.2bn in May to ₦1.41tn in June, while allotments nearly doubled to ₦1.22tn.
Analysts say the results highlight continued investor confidence in FGN bonds as reliable long-term investments, even as yields climb amid inflationary pressures and elevated financing needs.
