Data released by the Debt Management Office (DMO) has shown that the FGN bond auction for June 2018 recorded a huge success.
The exercise, which was conducted on Wednesday June 27, 2018, received subscriptions worth N66.7 billion from investors for the N60 billion worth of the bonds offered by the debt office on behalf of the federal government.
At the auction, the DMO had offered the bonds in three tenors of five, seven and 10 years.
It was gathered that the exercise recorded such success despite the forex sale of $210 million by the Central Bank of Nigeria (CBN) on Thursday, which mopped up over N65 billion from the market.
In addition, the CBN also mopped up over N200 billion from the system through the sale of OMO Bills on Monday.
The two exercises by the apex bank on Monday and Thursday tightened market liquidity and pushed up interest rates. To moderate Debt Service Costs, the DMO adopted a conservative approach by allotting only N31.2 billion at rates between 13.50 and 13.81 percent.