FG Rakes In N170.2 Billion From 30 Year Bond At May Auction

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The Federal Government, On Wednesday takes in a whopping N170.2 billion from three instruments the 5, 10 and 30-year tenors.

The three instruments, which were offered at N100 billion, were over subscribed at the Debt Management Office (DMO) May edition of bond auction.

A statement issued by DMO said as with the April Auction when the 30-year Bond was first offered to the market, investors showed a stronger demand for the 30-year Bond with subscription of over N100 billion compared to the N30 billion offered.

“This clearly indicates that the DMO understands the needs and preferences of investors in terms of tenor, which informed its introduction of the 30-year Bond’” the statement stated further.

The DMO said the 5 and 10-year instruments were equally oversubscribed, with subscription of N45.98 billion and N124.22 billion respectively, compared to the N35.00 billion offered for each of the instruments.

In addition to the strong demand, interest rates demanded by investors also significantly declined for all the instruments compared to the April 2019 Auction.

Allotments were made to successful Bidders at 14.11% for the 5-year, 14.24% for the 10-year and 14.49% for the 30-year Bond. The DMO allotted a total of N111.31 billion for the three instruments offered.

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