The Federal Government attracted **N1.41 trillion** in investor subscriptions at its June 2026 bond auction, exceeding the N1.2 trillion on offer by N213.49 billion, data from the Debt Management Office (DMO) shows.
The auction offered two re-opened instruments: the 22.60% FGN January 2035 bond and the 16.2499% FGN April 2037 bond, each with an offer size of N600 billion. Investors submitted N705.22 billion in bids for the 2035 paper and N708.27 billion for the 2037 bond, bringing total subscriptions to N1.413 trillion.
The DMO allotted N1.222 trillion to investors — N600.90 billion for the 2035 bond and N621.00 billion for the 2037 bond. Both instruments were oversubscribed, with the longer-dated 2037 bond accounting for just over half of total subscriptions and receiving the highest allocation.
Investor participation strengthened markedly. Total bids rose to **394** from 265 in May, while successful bids increased to 316 from 175.
**Yields climb sharply**
The June auction reflected a higher return requirement from investors. The marginal rate on the 2035 bond rose to **18.34%** from 17.00% in May, an increase of 134 basis points. The stop rate on the 2037 bond climbed to **18.35%** from 17.04%, up 131 basis points. The original coupon rates of 22.60% and 16.2499% will be maintained.
Bid ranges also widened. For the 2035 bond, bids ranged from 16.00% to 22.60%, while bids for the 2037 instrument ranged from 16.00% to 21.75%.
**Borrowing cost implications**
The rise in marginal rates indicates investors demanded higher compensation to hold long-term government debt, effectively raising the Federal Government's domestic borrowing cost compared with the previous month. The DMO doubled its issuance target from N600 billion in May to N1.2 trillion in June, reflecting an elevated domestic borrowing requirement.
Total market subscriptions jumped from N516.17 billion in May to N1.413 trillion in June, a month-on-month increase of N897.32 billion or **173.8%**. Allotments rose from N614.51 billion to N1.222 trillion over the same period, an increase of 98.8%.
The result suggests domestic investors continue to view FGN bonds as attractive vehicles even as yields rise, providing the government a reliable source of long-term funding amid persistent inflation concerns and an active repricing cycle in Nigeria's fixed income market.
