By Emma Ujah, Abuja Bureau Chief
Investors’ appetite for the Federal Government Bonds has continued to rise with the March Auction, conducted yesterday, recording a N140 billion over-subscription.
At the exercise, which was conducted by the Debt Management Office, DMO, N100 billion bonds were offered, but investors staked over N240.6 billion.
The over-subscription of the FGN bonds at the monthly auctions had been consistent since the beginning of the 2019 fiscal year.
A statement by DMO, yesterday, said it offered three instruments at the auction for three, seven and 10-year tenors and subscriptions for the three instruments were in excess of N148bn for competitive bids.
“Non-competitive bids valued at N92.6bn were also received, taking the total subscriptions across the 3 tenors to over N240.6bn,” it said.
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 five.
Allotments were made to successful bidders at the rates of 13.5 per cent for the five-year, 13.5 per cent for the seven-year and 13.5percent 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, according to the DMO, was N121.95 billion.