FG Raises N948bn As April Bonds Auction Records 35% Oversubscription

The federal government’s April 2026 bond auction recorded a strong oversubscription, with total bids rising to N948 billion.

The rise is significantly above the N700 billion on offer, reflecting sustained investor appetite for sovereign debt instruments amid evolving market conditions.

Accoeding to data released by the Debt Management Office (DMO), the auction, conducted on Monday April 27, 2026, featured the re-opening of three instruments, the 17.945 per cent FGN August 2030 bond, the 17.95 per cent FGN June 2032 bond, and the 22.60 per cent FGN January 2035 bond.

A breakdown of the results indicated a total of 339 bids across the three maturities, with demand largely skewed towards longer-dated securities.

The 10-year 2035 bond emerged as the most attractive to investors, attracting subscriptions of N599.02 billion against the N300 billion offered, underscoring a preference for higher-yield instruments at the long end of the curve.

Similarly, the 7-year 2032 bond recorded N167.04 billion in bids compared to the N100 billion offered, also reflecting moderate investor interest.

However, the 5-year 2030 bond saw relatively weaker demand, with subscriptions of N181.94 billion falling short of the N300 billion offer size, suggesting a softer appetite for shorter tenors.

The auction result also showed that bid rates ranged widely between 15.00 per cent and 22.60 per cent, highlighting divergent expectations among market participants regarding interest rate movements and macroeconomic stability.

Despite the wide bid range, the DMO maintained pricing discipline, with marginal rates settling lower at 16.30 per cent for the 2030 bond, 16.50 per cent for the 2032 bond, and 16.59 per cent for the 2035 bond.

The outcome of the auction reinforces the government’s ability to attract liquidity from the domestic debt market, even as investors continue to navigate inflationary pressures and shifting yield expectations.