The Federal Government’s September bond auction has recorded an impressive N1.26 trillion in total subscriptions, far exceeding the N200 billion initially offered by the Debt Management Office (DMO).

The auction featured two instruments: the 17.945 percent FGN August 2030 (five year reopening) and the 17.95 percent FGN June 2032 (seven year reopening), each with an offer size of N100 billion.

In response to the strong demand, the DMO allotted a total of N576.62 billion, representing a sharp increase compared to N136.16 billion allotted in August.

Yield rates at the auction moderated, with the five year bond clearing at 16.00 percent, down from 17.945 percent, while the seven year bond cleared at 16.20 percent, compared to 18.00 percent in the previous auction.

Analysts say the oversubscription, which stood at more than 530 percent, reflects robust investor confidence in government securities, ample liquidity in the financial system, and expectations of stable returns despite lower yields.