WATCH THE VIDEO HERE The Federal Government raised a total of N211.144 billion from its December 2024 bond auction, significantly lower than the N346.155 billion raised in November. The Debt Management Office (DMO), which conducted the auction, reopened two existing instruments: the 19.30% FGN APR 2029 (5-Year Bond) and the 18.50% FGN FEB 2031 (7-Year Bond). The auction reflected a marked decline in both subscriptions and allotments, emphasizing a shift in market dynamics. In the December auction, held on December 16, 2024, total subscriptions across the two bonds amounted to N278.82 billion. The number of successful bids also fell significantly between the two months. In December, there were only 98 successful bids, compared to 198 in November, a steep decline of 100 bids or 50.51%. This reduction suggests either diminished investor interest or stricter criteria for successful allotments. Despite the declines in subscriptions and allotments, marginal rates displayed relative stability, highlighting investor confidence in the Federal Government’s debt instruments. Also, the reduced number of bids and lower allotment figures could indicate a more measured borrowing approach by the government to manage debt sustainability.
FG raises N211.144 billion from December FGN bond auction
