The Debt Management Office, DMO, said the federal government on Thursday, August 18 raised a staggering N219.58 billion in local currency denominated bonds with yields soaring across the board at an auction.
The DMO said it sold N40 billion of 2021 paper at 15.08 per cent at Wednesday, August 17, auction, compared with 14.50 per cent at the previous auction last month.
It further stated that It also sold N30 billion of 2026 debt at 15.28 per cent, against 14.90 per cent, and N40 billion of the 2036 debt at 15.53 per cent against 14.98 per cent.
The DMO sold N109.29 billion more than the initially advertised amount of N40 billion for the 2021 paper at the auction.Total subscription at the auction stood at N210.29 billion, lower than the N231.76 billion demanded at the last sale.
The federal government issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.