Investors oversubscribed the FGN Bond Auction for June 2018, which held wednesday, at which bonds in three tenors – five years, seven years and 10 years were offered.
The Debt Management Office (DMO) said in a statement that investors bid for N66.7 billion compared to the N60 billion on offer.
The debt management agency stated that this was in spite of the sale of US$210 million foreign exchange (FX) by the Central Bank of Nigeria (CBN) last 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 FX sale and the OMO (Open Market Operation Auction 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%,” the statement said.