The Federal Authorities attracted stronger investor demand at its February 2026 bond public sale, with complete subscriptions climbing to N2.70 trillion, even because the Debt Administration Workplace considerably diminished allotments and marginal charges declined throughout all tenors.
Outcomes launched by the Debt Administration Workplace (DMO) present that N800 billion was provided throughout three reopened devices on the February 23, 2026 public sale.
The bonds included the 17.95% FGN JUN 2032, 19.89% FGN MAY 2033, and 19.00% FGN FEB 2034.
On the February public sale, the 7-year 17.95% FGN JUN 2032 bond recorded subscriptions of N851.59 billion towards N400 billion provided.
As compared, the January 26, 2026, public sale recorded complete subscriptions of N2.25 trillion towards N900 billion provided. Month on month, this represents a N446 billion enhance in demand, alongside an enchancment within the bid-to-offer ratio from roughly 2.5 instances in January to three.4 instances in February.
Regardless of stronger demand, the DMO allotted solely N524.28 billion in February, comprising N188.14 billion for the 2032 bond, N208.63 billion for the 2033 bond and N127.51 billion for the 2034 bond.
In January, aggressive allotments totalled N1.54 trillion, with an extra N130.72 billion issued by non-competitive allotments.
This signifies a month-on-month drop of about 66% in aggressive allotments, suggesting that the Federal Authorities intentionally moderated home borrowing volumes in February regardless of ample liquidity out there.
Pricing situations improved considerably in February. The marginal charges settled at 15.74% for each the 7-year and 9-year bonds, and 15.50% for the 10-year bond.
In January, the higher finish of the vary on the 2035 bond reached 25.90%, highlighting the upper yield volatility seen within the earlier month.
In each auctions, the DMO maintained the unique coupon charges on the devices, which means the cease price displays the clearing yield for profitable bids fairly than a change in coupon construction.
General, February’s public sale alerts enhancing funding situations for the Federal Authorities.
Investor demand strengthened, yields moderated sharply, and the DMO exercised restraint by issuing considerably lower than in January.
