Investors oversubscribed the FGN Bond
Auction for June 2018, which held wednesday, at which bonds in three
tenors – five years, seven years and 10 years were offered.
Auction for June 2018, which held wednesday, at which bonds in three
tenors – five years, seven years and 10 years were offered.
The Debt Management Office (DMO) said in a statement that investors bid for N66.7 billion compared to the N60 billion on offer.
The debt management agency stated that
this was in spite of the sale of US$210 million foreign exchange (FX) by
the Central Bank of Nigeria (CBN) last Thursday, which mopped up over
N65 billion from the market.
this was in spite of the sale of US$210 million foreign exchange (FX) by
the Central Bank of Nigeria (CBN) last Thursday, which mopped up over
N65 billion from the market.
“In addition, the CBN also mopped up over N200 billion from the system through the sale of OMO Bills on Monday.
The FX sale and the OMO (Open Market Operation Auction tightened market liquidity and pushed up interest rates.
“To moderate Debt Service Costs, the DMO
adopted a conservative approach by allotting only N31.2 billion at
rates between 13.50% and 13.81%,” the statement said.
adopted a conservative approach by allotting only N31.2 billion at
rates between 13.50% and 13.81%,” the statement said.
