The Debt Management Office (DMO) on Wednesday reported that it sold Federal Government bonds worth N39.52 billion at the November edition of the monthly auction.
Three bonds in tenors of 5 years, 7 years and 10 years were offered at the auction.
According to the debt management office, allotments were made to the successful bidders at 15.20 per cent for the 5-year, 15.50 per cent for the 7-year and 15.83 per cent for the 10-year bonds.
The Office reported further that although subscription levels were higher than the amount allotted, it was unwilling to accept higher rates from subscribers in order to moderate debt service cost and maintain market stability.
It attributed its unwillingness to accept higher rates from subscribers to the fact that the rates at which each of the bonds were allotted were close to their secondary market yields.
It would be recalled that in recent times, analysts have raised concern about the Nigerian government pre-disposition to raise funds through debt instruments to finance its budgets.
But then, the fiscal authorities have consistently maintained the sustainability of the nation’s debt stock in view of its current ratio to the GDP and other micro and macroeconomic assessment parameters.
