DMO raise ₦932bn in FGN bonds

The Debt Management Office (DMO) under-allotted Federal Government of Nigeria (FGN) bonds to investors despite high subscription levels at Monday’s auction.

The authority held its monthly bond auction offering three tenors worth ₦1.2 trillion to fund the government’s 2026 budget deficit.

The reopening offer included debt instruments with January 2035, April 2037, and June 2038 maturity dates, with ₦400 billion offered per class.

Market analysts and fixed-income traders noted that demand remained robust, with total subscriptions reaching approximately ₦1.7 trillion as investors continued to seek yields on local currency assets.

Out of the total subscription, the DMO allotted ₦931.8 billion across the reopened instruments, reflecting a disciplined pricing approach.

The 10-year reopening bond worth ₦400 billion received ₦554.7 billion in bids, with the DMO selling ₦245.73 billion at an 18.34% marginal rate, matching the previous auction.

The 15-year bond attracted ₦518 billion in demand against the ₦400 billion offered, settling at a total allotment of ₦304.63 billion at a rate of 18.40%.

Meanwhile, the 20-year bond generated ₦665.19 billion in subscriptions, with the DMO allotting ₦381.46 billion at a marginal rate of 18.35% while rejecting the remaining bids.