The Federal Government allotted N748.64 billion to investors at its September 2026 bond auction, while total subscriptions reached N1.49 trillion as demand moderated from the previous month.
This is according to the latest circular released by the Debt Management Office (DMO) on Tuesday.
The September auction, conducted by the DMO, featured a new 10-year bond maturing in September 2036 and a reopening of the 15.45% FGN June 2038 bond.
According to the circular, investors submitted N1.49 trillion in bids, with the government allotting N748.64 billion to the market and a further N850 billion through non-competitive allotments.
The September auction recorded N1.49 trillion in subscriptions, down from N1.73 trillion across the three instruments offered in August.
The most notable change was recorded on the reopened June 2038 bond, whose marginal yield fell to 16.85% in September from 17.79% at the August auction.
In September, the DMO introduced the new September 2036 issue with a 16.79% coupon, while maintaining the 15.45% coupon on the reopened June 2038 bond.
Earlier, Nairametrics reported that the federal government sought to raise N1 trillion in its September 2026 bond auction with a minimum entry threshold of N50.001 million for participating investors.
Also, Nairametrics reported that DMO raised N5.86 billion through the FGNSB in August 2026, down from the N6.19 billion raised in July, indicating softer investor demand during the month.
The September results point to a bond market where borrowing costs have eased on the longer-dated benchmark, even as investor demand remains selective.
They are also recognised as government securities for tax-exemption purposes under the Companies Income Tax Act and the Personal Income Tax Act.
