The Federal Government attracted N1.41 trillion in investor subscriptions at its June 2026 bond auction, exceeding the N1.2 trillion offered by N213.49 billion, as demand for long-term government securities remained strong despite rising yields. This is according to data released by the Debt Management Office on Monday.
The government offered N600 billion each in the re-opened 22.60% FGN January 2035 bond and the 16.24% FGN April 2037 bond, bringing the total offer to N1.2 trillion. Investors submitted bids worth N705.22 billion for the 2035 instrument and N708.27 billion for the 2037 bond, resulting in total subscriptions of N1.41 trillion. The DMO eventually allotted N1.222 trillion to investors, comprising N600.90 billion for the 2035 bond and N621.00 billion for the 2037 bond.
The June auction shows sustained investor interest in Federal Government securities, with both instruments attracting subscriptions above the amounts offered. The 2035 bond recorded an oversubscription of N105.22 billion, while the 2037 bond was oversubscribed by N108.27 billion. Investor participation also strengthened significantly during the month, with total bids rising to 394 from 265 in May, while successful bids increased to 316 from 175.
Notably, the longer-dated 2037 bond attracted stronger demand, accounting for just over half of total subscriptions. The strong demand came despite the larger offer size, as the DMO doubled its issuance target from N600 billion in May to N1.2 trillion in June, yet investors submitted sufficient bids to fully absorb the offer and support additional allotments.
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