FG’s October bond auction oversubscribed by N109bn

The October 2024 bond auction by the federal government has been oversubscribed by N109bn, it has been revealed.

The Debt Management Office (DMO) yesterday said that the auction held on Monday October 21 raked in N289.597bn.

It featured two re-opened tranches of existing bonds: the 19.30% FGN APR 2029 (5-year bond) and the 18.50% FGN FEB 2031 (7-year bond).

Analysts say the oversubscription was indicative of the investors’ confidence in the market. This is despite the tough economy worsened by rising inflation.

It would be recalled that the federal government had offered N180 billion in the October auction, with N90 billion allocated to each bond.

This was slightly lower than the N190 billion offered in September, which was distributed across three bonds—the 5-year, 7-year, and 9-year tenors.