The Federal Government raised N748.64bn from its September 2026 domestic bond auction, with investors showing strong demand for both the new 10-year bond and reopened 15-year instrument.
The Debt Management Office allotted N288.83bn from the N400bn offered for the 10-year bond at a marginal rate of 16.79 per cent. Investors submitted bids worth N546.90bn, representing demand 36.7 per cent above the amount offered.
The strong demand for the 10-year bond came alongside a moderation in borrowing yields compared with recent levels, indicating improved investor appetite for longer-term government securities.
For the 15-year bond, offered as a N600bn reopening, investors submitted N947.83bn in bids. The DMO allotted N460.01bn at a marginal rate of 16.85 per cent, down from the 17.79 per cent recorded at the previous auction.
Across both securities, investors sought N1.49tn, about 49.5 per cent higher than the N1tn offered by the DMO. However, the debt office allotted N748.64bn, leaving about N746.59bn of submitted bids unaccepted.
The auction showed that demand for Nigerian government securities remained strong, while the DMO remained selective about the amount of debt issued. The lower rate on the 15-year bond also suggests some easing in investors’ required returns on longer-term government debt, although borrowing costs remain elevated.
The latest auction comes as the Federal Government continues to rely on domestic borrowing to finance its fiscal requirements and manage its debt portfolio. Its outcome is also expected to attract attention in the secondary bond market, where government bond yields influence pricing across other fixed-income assets.
