DMO allots N271.14 billion for FGN bond as demand soars for longer tenor in March 2025 re-opening 

The auction revealed a strong investor appetite for the 9-year tenor, which cleared at 19.99%, while the 5-year bond saw significantly weaker demand.

The bond auction held on March 24, 2025, for the re-opening of the 19.30% FGN APR 2029 (5-year bond) and the 19.89% FGN MAY 2033 (9-year bond).

The auction witnessed strong investor interest, particularly for the longer-tenor bond.

This was contained in a statement posted on the agency’s website on Monday.

Despite the auction results, the DMO reaffirmed that the original coupon rates for both bonds will be maintained:

The strong demand for the 9-year bond suggests investors are favoring longer-dated instruments, possibly in anticipation of stable or declining interest rates in the medium term. Meanwhile, the weaker demand for the 5-year bond may indicate caution regarding shorter-term yields or liquidity concerns in the fixed-income market.

Analysts suggest that the results reflect broader macroeconomic trends, including inflationary pressures and monetary policy expectations. The marginal rates indicate that investors are pricing in potential risks while seeking attractive yields.

The March 2025 FGN bond auction showcased mixed investor sentiment, with robust interest in longer-tenor bonds but tepid participation in shorter-term securities.