Investors show strong demand for FGN bonds at DMO auction
The Debt Management Office received robust investor interest at its latest bond auction, with bids totaling N1.73tn. The DMO allotted N1.56tn across three Federal Government of Nigeria bonds, surpassing the initial offer amount. The 2038 bond attracted the highest demand, accounting for nearly half of the total bids. Marginal rates at the auction were notably lower than those recorded at the previous auction in July.
TLDR
- Investors submitted N1.73tn in bids at the Debt Management Office’s 17 August 2026 auction, with N1.56tn allotted.
- The amount allotted exceeded the N1.10tn initially offered due to strong demand, especially in the non-competitive segment.
- The 15.45% FGN June 2038 bond saw the strongest demand, with total allocations above N1.37tn and a marginal rate of 17.79%.
- The 22.60% FGN January 2035 and 16.2499% FGN April 2037 bonds were also allotted, with marginal rates of 17.15% and 17.19% respectively.
- Marginal rates for all three bonds were over 100 basis points lower than the previous auction in July, indicating investors’ willingness to accept lower yields.
