The Debt Management Office (DMO) has announced that it will issue N70 billion naira ($442 million) in sovereign bonds (N35 billion each of 7% October 2019 and 16.39% January 2022) maturing in 2019 and 2022. This is DMO second monthly debt auction this year.
Analysts expect slightly higher marginal rates for these issues compared to the 16.00% and 16.39% for the 2019 and 2022 bond respectively at the January auction.
Currently, the secondary market yields for these instruments are 16.21% and 16.51% for the 2019 and 2022 Bonds respectively.
Meanwhile, the third treasury bills primary auction this year was held last week with the central bank selling N67.22 billion in 364-day paper at 16.89%, N50 billion in 182-day at 16.09% and N32.06 billion of 91-day bills at 14.70%.
The marginal rates at the week’s auction were slightly lower when compared to that of January 25th where rates were 16.10% and 14.79% for 180-day and 91-day respectively. The total subscription stood at N316.85 billion as against N258.13 billion recorded at the previous auction.
