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DMO Allots N929.32bn In July Bond Auction, Investor Demand N1.74tn

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The Debt Management Office (DMO) has allotted N929.32 billion in its July 2026 Federal Government of Nigeria (FGN) bond auction after investors submitted subscriptions worth N1.74 trillion, underscoring sustained appetite for government securities despite elevated interest rates.
The auction, held on July 20, 2026, featured three re-opened FGN bonds—the 22.60 per cent FGN January 2035, 16.2499 per cent FGN April 2037, and 15.45 per cent FGN June 2038—with N400 billion offered on each instrument, bringing the total amount on offer to N1.2 trillion. Settlement is scheduled for July 22, 2026.
Auction results released by the DMO showed that the 22.60 per cent FGN January 2035 bond attracted 184 bids, of which 90 were successful. Investors subscribed N555.47 billion, while the DMO allotted N245.73 billion.
The bond cleared at a marginal rate of 18.34 per cent, with accepted bids ranging from 16.00 per cent to 22.60 per cent.
Summary of FGN Bond Auction Results for July, 2026
The 16.2499 per cent FGN April 2037 bond drew the highest interest among the three instruments, receiving 211 bids, including 126 successful bids. Total subscriptions stood at N665.19 billion, while ₦381.46 billion was allotted to investors.
The bond cleared at a marginal rate of 18.35 per cent, with bid yields ranging between 16.00 per cent and 19.58 per cent.
For the 15.45 per cent FGN June 2038 bond, the DMO received 161 bids, with 92 emerging successful. Investors subscribed N518 billion, while an additional N50 billion was received through non-competitive bids.
The DMO allotted N302.13 billion to the market, with the bond clearing at a marginal rate of 18.40 per cent. Accepted bids ranged from 17.00 per cent to 20.45 per cent.
In total, subscriptions across the three bond offerings amounted to N1.738 trillion, significantly exceeding the amount allotted to the market.
However, the DMO exercised discretion in its allotments, allocating N929.32 billion to competitive bidders, below the N1.2 trillion initially offered.
The DMO stated that successful bids for the three instruments were allotted at their respective marginal rates of 18.34 per cent, 18.35 per cent, and 18.40 per cent, while the original coupon rates of 22.60 per cent, 16.2499 per cent, and 15.45 per cent will remain unchanged.
The outcome reflects continued investor confidence in Federal Government securities as institutional investors seek relatively attractive yields in the domestic fixed-income market, even as the government continues to finance its borrowing programme through the domestic bond market.
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