Debt Management Office has raised N801.53 billion from the local bond market in the first five months of the year as a total of N63.2 billion matured Treasury Bills is expected to be rolled over this Wednesday.
Interest in the bond market has been in the uptick this year with investors staking N798.2 billion on the Federal Government of Nigeria (FGN) Bonds in five months and another N3.33 billion in the FGN Savings Bond in the first four months of the year.
The Savings Bond has seen an increase in subscription as its yield increased from 2.197 per cent and 3.197 per cent to 5.522 per cent and 6.522 per cent for the two and three years bonds respectively. Allotment for the Savings bond in January stood at N18.14 million and N78.05 million for the two and three-year bonds.
The DMO Clarifies N2.343trillion New Loan Request. This however increased in February to N673.12 million and N1.124 billion for the two and three-year bond respectively as the coupon rate rose to 4.214 per cent and 5.214 per cent for both papers.
The FGN Bond secondary market had recorded a slowdown in buying activities, despite the positive April inflation data of 18.12 per cent released by the National Bureau of Statistics which showed a 5bps moderation for the first time in months.
Market pundits say they expect some sell-offs to persist as liquidity levels remain pressured and as investors seek higher yields in the market. They urged investors to trade cautiously and take advantage of relatively attractive long-dated offers along the yield curve and possible corporate offerings