FGN Bond Auction Set for June 22: N1.2 Trillion Offered Amid Rising Yields
The Debt Management Office will auction N1.2 trillion in FGN Bonds on June 22, 2026, offering N600 billion each in 10-year (22.60% FGN JAN 2035) and 20-year (16.2499% FGN APR 2037) bond re-openings. Settlement occurs June 24.
Subscription requires minimum N50,001,000 (N1,000 per unit), with interest paid semi-annually and principal repaid at maturity. Bonds are backed by the Federal Government, traded on NGX and FMDQ, and qualify as liquid assets for banks with tax exemptions for pension funds.
This auction comes amid CBN liquidity tightening via OMO that has pushed yields higher. Market watchers will monitor results to gauge yield direction, especially on longer tenors. The higher coupon on the 10-year vs 20-year bond reflects different issuance rate environments.
Will you consider investing given the minimum N50M threshold, or watch the auction results to inform your fixed-income strategy amid rising yields?