FG to auction N1 trillion bonds Monday, reopening June 2038 issue

The Federal Government will auction N1 trillion in bonds on Monday, September 14, 2026, to raise fresh financing. N600 billion will come from reopening the existing 15.45% FGN June 2038 bond, while N400 billion will be from a new bond maturing in September 2036. The June 2038 bond, first issued in June 2023 with N90 billion, now has about N2.42 trillion outstanding; another N600 billion allotment could push the total above N3 trillion. Investors must subscribe a minimum of N50 million per bid. Recent auctions show the bond’s yield falling from 18.40% in July to 17.79% in August, suggesting declining borrowing costs. This trend mirrors the Central Bank of Nigeria’s September 9 Treasury Bill auction, where the one‑year stop rate dropped to 16.62% for a third straight cut. Analysts will watch Monday’s auction to see if the June 2038 bond’s yield drops further, signaling cheaper government borrowing, or rises, indicating investors demand higher returns for longer‑dated debt. The auction is part of the DMO’s revised Q3 2026 borrowing programme, reflecting greater reliance on the domestic bond market to meet financing needs.

SOURCE: https://nairametrics.com/2026/09/13/dmo-returns-to-popular-2038-bond-with-fresh-n600-billion-offer/