DMO allots N929.3B in July bond auction despite N1.74T bids as FGN securities demand stays strong
The Debt Management Office allotted N929.32 billion across three FGN bonds at its July 20, 2026 auction, despite receiving bids worth N1.74 trillion. Settlement is scheduled for July 22, 2026.
The 22.60% FGN January 2035 bond attracted N555.47 billion in subscriptions with N245.73 billion allotted at a marginal rate of 18.34%. The 16.2499% FGN April 2037 bond saw highest demand at N665.19 billion subscribed, with N381.46 billion allotted at 18.35%. The 15.45% FGN June 2038 bond received N518.00 billion in bids, with N302.13 billion allotted (including N50B non-competitive) at 18.40%. While allotted at these marginal rates, the original coupon rates of 22.60%, 16.2499%, and 15.45% will be maintained.
This follows a similar June 2026 auction that raised N1.2 trillion, showing sustained investor appetite for government securities despite lower allotments than subscriptions. Demand remained strongest for the longer-dated April 2037 bond, indicating investors' willingness to lock in yields amid interest rate expectations.
With FGN bonds serving as Nigeria's benchmark fixed-income instruments backed by federal government credit, what does this yield environment mean for your investment strategy - are these rates attractive enough to consider adding government securities to your portfolio, or would you wait for potential further rate movements?