Uche Usim, Abuja
The Debt Management Office (DMO) on Wednesday disclosed that Federal government’s N100 billion bond auction for March was oversubscribed by N48 billion, just as in the auctions for January and February 2019.
The DMO offered three instruments at the auction for three, seven and ten-year tenors and subscriptions for the three instruments was in excess of N148 billion for competitive bids. Non-competitive bids valued at N92.6 billion were also received, taking the total subscriptions across the three tenors to over N240.6 billion.
The trend of investors’ preference for the longer tenured instrument continued, with the 10-year bond significantly oversubscribed with a bid-to-cover ratio above 5.
Allotments were made to successful bidders at the rates of 13.5% for the 5-year, 13.5% for the 7-year and 13.5% for the 10-year bonds, which are considerably lower than the allotment rates for the February 2019 auction.
The total amount allotted to both competitive and non-competitive bids for the three instruments was N121.95 billion.