Investors jostled for the Nigeria Federal Government’s N60 billion bonds issued on Wednesday, as they continue to show confidence in the revamping economy.
The bonds issued by the Debt Management Office (DMO) in three tenors – 5 years, 7 years and 10 years was oversubscribed as investors bid for N66.7 billion compared to the N60 billion offered.
This is in spite of the FX Sale of $210 million by the CBN last Thursday, which mopped up over N65 billion from the market. 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 auction tightened market liquidity and pushed up interest rates.
To moderate Debt Service Costs, the DMO said it adopted a conservative approach by allotting only N31.2 billion at rates between 13.50% and 13.81%.
