298 competitive bids in July, shows growing thirst for bonds-DMO

The Debt Management Office (DMO) has said the federal government’s July bond instruments received a total of 298 competitive bonds from investors, showing a growing thirst for bonds.

The DMO had offered three instruments with tenors of five, 10 and 30 years, which had a total value of N145 billion, for subscription to the investing public at its July 2019 FGN bond auction on Wednesday, July 24.

But the bids received for the three instruments amounted to a total value of N301.02 billion, indicating a subscription level of 207.6 percent.

The DMO said allotments were made on successful bids at 13.35 percent for the five-year bond, 13.64 percent for the 10-year bond and 14.12 percent for the 30-year bonds.

The DMO said the allotments were consistent with secondary market yields and also represented a decline in the marginal rates when compared with those at the June 2019 FGN bond auction.

The statement read in part, “The total amount allotted for competitive bids was N86.82bn from the total subscription of N301.02bn. In addition, the sum of N58.20bn was allotted across the three tenors for non-competitive bids at the same rates with the competitive bids.

“Overall, the sum of N145.02bn was raised at the auction through both competitive and non-competitive bids.”

The DMO stated that the amount raised was to be utilised to part-finance the 2019 budget of the Federal Government.

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