Fed Govt’s December Bond Oversubscribed By N70b

THE Debt Management Office (DMO) said the N60 billion bond it
offered for December had been oversubscribed by more than N70
billion.

This was contained in a statement obtained from DMO’s website
yesterday.

“DMO offered N60billion at the FGN Bond Auction of December
2020, which held on December 16. The offer was oversubscribed as
total bids received were N134.056 billion, a subscription level of
over 220 per cent,” it said.

DMO stated that the rates of 6.945 per cent and 7.000 per cent
for the 15-year and 25-year FGN Bonds, were higher than the rates
of 5.000 per cent and 5.785 per cent at the last auction in
October.

“The rates reflect the level of interest rates in the market
influenced in part by Monetary Policy Actions,” it said.

FGN Bonds are debt securities issued by the DMO for and on
behalf of the Federal Government and the government has an
obligation to pay the bondholder the principal and agreed interest
as and when due.

The Federal Government issues Bonds for some of the following
reasons: To finance government fiscal deficits in a
non-inflationary and sustainable manner, to enhance fiscal
discipline of the Government, to refinance maturing debt
obligations and to establish benchmark yield curve.

THE Debt Management Office (DMO) said the N60 billion bond it
offered for December had been oversubscribed by more than N70
billion.

This was contained in a statement obtained from DMO’s website
yesterday.

“DMO offered N60billion at the FGN Bond Auction of December
2020, which held on December 16. The offer was oversubscribed as
total bids received were N134.056 billion, a subscription level of
over 220 per cent,” it said.

DMO stated that the rates of 6.945 per cent and 7.000 per cent
for the 15-year and 25-year FGN Bonds, were higher than the rates
of 5.000 per cent and 5.785 per cent at the last auction in
October.

“The rates reflect the level of interest rates in the market
influenced in part by Monetary Policy Actions,” it said.

FGN Bonds are debt securities issued by the DMO for and on
behalf of the Federal Government and the government has an
obligation to pay the bondholder the principal and agreed interest
as and when due.

The Federal Government issues Bonds for some of the following
reasons: To finance government fiscal deficits in a
non-inflationary and sustainable manner, to enhance fiscal
discipline of the Government, to refinance maturing debt
obligations and to establish benchmark yield curve.