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HomeTop NewsNigeria raises N260 bln bonds at auction with yields down across board

Nigeria raises N260 bln bonds at auction with yields down across board

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By Oludare Mayowa

Nigeria sold a total of N260.09 billion worth of sovereign bonds on Wednesday, N110.09 billion more than it had offered at the auction with yields on the debt declined across board.

The Debt Management Office (DMO) had announced plans to raise N150 billion worth of bond at the Wednesday’s auction but ended up raising 73.39 percent more debt due to improve liquidity in the money market.

Yields were generally down compared with the returns on the debt at the previous auction.

Also, at the OMO auction this week, yields also moderated about 30bps to close at mid rates of 5.75 percent on the short end, 7.00 percent on the medium tenors and 7.35 percent on the long end.

At the debt auction, yield on the 30-year debt declined to 12.80 percent from 13.25 percent at the previous auction. Also, yield on the 20-year bond fell to 12.75 percent compared with 13.15 percent in July.

READ ALSO: FIRS targets N10.1 trln revenue collection in 2022

Yield on the 10-year paper also dropped to 11.60 percent against the 12.35 percent at the last month’s auction.

The DMO sold N104.81 billion of the 30-year paper, N91.03 billion of the 20-year note and N64.25 billion of the 10-year bond at the auction.

Total subscription stood at N368.02 billion with demand heavier in the 30-year paper at N177.38 billion followed by the 20-year paper at N104.95 billion and the least at N77.69 billion for the 10-year paper.

Nigeria issues bond monthly as part of measures to raise cash to finance part of fiscal deficit and help banks manage liquidity.

Nigeria proposed to raise about N2.5 trillion from domestic debt market to fund this year’s budget deficit.

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