By theG&BJournal
TUE FEB 24 2026-theGBJournal| Nigeria’s February Federal Government bond auction drew solid investor participation, underscoring sustained appetite for sovereign debt even as yields remain elevated.
The Debt Management Office (DMO) offered a mix of re-opened tenors on Monday- the AUG-2030, MAY-2033 and FEB-2034 bonds, offering a total of N800.00 billion- all of which attracted strong bids from banks, pension funds and asset managers seeking to lock in attractive returns amid persistent inflationary pressures.
Market data showed that total subscriptions comfortably exceeded the amount on offer at N2.70 trillion (bid-to-offer: 3.4x), with the DMO eventually allotting N524.28 billion (bid-to-cover: 5.1x).
The stop rate on the FEB 2034, which was on-the-run last month, declined by 200bps to 15.50%, reflecting cautious pricing by investors
The significant demand signals confidence in the Federal Government’s credit profile and the relative attractiveness of FGN securities compared to other fixed-income instruments.
The auction outcome comes as market participants closely watch liquidity conditions and the stance of the Central Bank of Nigeria (CBN), particularly ahead of key policy meetings today that could shape interest rate direction.
With inflation still sticky and treasury yields hovering at elevated levels, investors are carefully balancing risk and return, positioning portfolios to hedge against volatility.
Analysts say the February result reinforces the depth of Nigeria’s domestic debt market and provides the government with critical funding to support budget implementation.
As fiscal authorities lean more on the local bond market to finance deficits, sustained investor confidence will remain central to maintaining stable borrowing costs in the months ahead.
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