The Federal Government secured ₦748.64 billion at its September 2026 domestic bond auction, driven by robust investor demand across both the newly introduced 10-year paper and the reopened 15-year security.
Across the two instruments, total investor subscriptions reached ₦1.49 trillion, exceeding the Debt Management Office’s initial ₦1 trillion offer by approximately 49.5 per cent. Despite this high appetite, the debt office acted selectively in its allotments, leaving roughly ₦746.59 billion in bids unallocated.
For the reopened 15-year FGN bond, which carried a ₦600 billion target, investors tendered ₦947.83 billion in applications. The DMO ultimately allotted ₦460.01 billion at a marginal rate of 16.85 per cent, marking a sharp drop from the 17.79 per cent recorded at the previous auction. This decline in the 15-year yield indicates a gradual drop in required investor returns on long-term government debt, though overall borrowing expenses remain high.
On the 10-year instrument, market participants submitted bids totaling ₦546.90 billion against the ₦400 billion offered, surpassing the target by 36.7 per cent. The DMO allotted ₦288.83 billion for the issue at a marginal rate of 16.79 per cent. The combination of strong demand and moderating yields for this new paper highlights an increased market interest in longer-dated government stock.
The result reflects the Federal Government’s ongoing reliance on the domestic market to satisfy its fiscal demands and handle debt obligations. Furthermore, secondary market participants will closely scrutinise the auction outcome, as shifting sovereign bond yields directly affect pricing across treasury bills, corporate debt, and other fixed-income instruments.