Investor confidence in Federal Government securities remained strong in July as the Debt Management Office (DMO) recorded an impressive ₦1.74tn in subscriptions at its latest bond auction. The figure surpassed the ₦1.2tn offered across three reopened bond instruments, resulting in an oversubscription of about ₦538.66bn. The development underscores sustained appetite for fixed-income investments despite evolving market conditions and interest rate expectations.
According to auction results released by the DMO, the reopening of the 22.60% FGN JAN 2035, 16.2499% FGN APR 2037, and 15.45% FGN JUN 2038 bonds attracted significant interest from investors. Each bond had an offer size of ₦400bn, but demand far exceeded supply as institutional and individual investors sought to lock in attractive returns through government-backed securities.
The 16.2499% FGN APR 2037 bond emerged as the most sought-after instrument at the auction, attracting 211 bids valued at ₦665.19bn. Out of these, 126 bids were successful, with ₦381.46bn allotted. The 22.60% FGN JAN 2035 bond followed closely, recording 184 bids worth ₦555.47bn, while the DMO allotted ₦245.73bn from 90 successful bids. Meanwhile, the 15.45% FGN JUN 2038 bond drew 161 bids valued at ₦518bn, with ₦302.13bn allotted alongside a ₦50bn non-competitive bid.
In total, the DMO allotted ₦929.32bn across the three bond instruments. Successful bids were allotted 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, investors will continue to receive the original coupon rates attached to each bond, making the securities attractive options for those seeking stable and predictable returns.
Market analysts say the strong turnout reflects growing investor confidence in government debt instruments and the broader fixed-income market. With settlement scheduled for July 22, 2026, the auction’s outcome is expected to provide fresh insights into market liquidity, interest rate expectations, and investor sentiment. Federal Government bond auctions remain key indicators of economic confidence, while also serving as a vital channel for financing budgetary needs and infrastructure development across the country.
soure: punch
