Debt Office Cuts Interest Rates on Nigerian Bonds
Debt Management Office (DMO) cut spot rate on Nigerian government bonds, according to details from the primary market auction results. DMO offered N300 billion worth of local bonds at its monthly auction sales to investors on Monday. The auction underperformed as the authority could only raise N295.98 billion across two tenors.
Investors’ preference for duration was further reinforced at the primary market auction, AAG Capital Limited said in a note. FGN bonds maturing in May 2033 was oversubscribed by 2x, cleared at spot rate of 19.85% – this represent a 14 basis points decline from 19.99% previously offered to investors.
On the flip side, the FGN bonds maturing in April 2029 experienced weak demand at the auction, with bid to cover of 0.16x. Spot rate on 5-year bonds declined by 2 basis points to 18.98%.
Trading activities in the local bond secondary market was subdued as Investors’ attention was focused on the bond auction, where instruments worth N300.0 billion were offered through re-openings of the APR-2029 and MAY-2033 bonds. #Debt Office Cuts Interest Rates on Nigerian Bonds#
