Lagos -The Debts Management Office (DMO) on Thursday said it sold Federal Government bonds worth N100 billion at its monthly bonds auction at lower yields.
This was contained in the monthly auction result released by DMO and pasted on its Website.
The result indicated that DMO auctioned N20 billion papers with maturity date of October 2019 and N30 billion bonds papers with January 2022 as maturity period.
The DMO said that an additional N50 billion papers with 2022 as maturity period was also allotted on non-competitive basis to investors.
The 2019 bonds were sold at a marginal rate of 15.30 per cent, as against the 16.16 per cent yielded at the February auction.
The 2022 instruments were issued at 15.41 per cent, against the 15.89 per cent it was issued during the February auction.
NAN reports that the total subscription at the March auction stood at N131.40 billion, against the N141.65 billion recorded at the February auction.
A DMO official, who pleaded anonymity, said that N50 billion of the 2022 bonds were sold to some government institutions.
Some of the bond dealers, who pleaded anonymity, said the fall in the yields was due to the Central Bank of Nigeria (CBN)’s retention of interest rate benchmark at 12 per cent.
NAN reports that the Federal Government issues sovereign bonds monthly to support the local bond
market and as well fund the budget deficits.
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