TUES JULY 21 2026-theGBJournal| Nigeria’s Debt Management Office (DMO) attracted ₦1.74 trillion in investor subscriptions at Monday’s Federal Government bond (FGN Bond) auction, but opted to allot less than the amount offered while leaving borrowing costs unchanged on its benchmark maturities, signalling continued discipline in domestic debt issuance despite healthy demand.
The DMO reopened the January 2035, April 2037 and June 2038 Federal Government bonds, offering a combined ₦1.20 trillion across the three tenors.
Investor demand reached ₦1.74 trillion, translating to a bid-to-offer ratio of 1.4 times.
However, the agency allotted ₦931.82 billion, below the amount on offer, resulting in a bid-to-cover ratio of 1.9 times as it resisted pressure to increase borrowing beyond its funding strategy.
The auction results showed that stop rates on the January 2035 and April 2037 bonds—both of which were the on-the-run benchmark securities at the previous auction—remained unchanged at 18.34 per cent and 18.35 per cent, respectively.
The newly reopened June 2038 bond cleared at a stop rate of 18.40 per cent.
The outcome suggests the DMO remains comfortable with prevailing funding conditions, choosing to maintain stable borrowing costs even as investors continued to seek long-dated government securities amid expectations that yields will remain attractive in the near term.
In the secondary market, trading activity was subdued as investors awaited the outcome of the primary auction and fresh market catalysts.
Consequently, the average sovereign bond yield closed unchanged at 17.4 per cent, reflecting a broadly balanced market with limited directional trading.
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