Cost of Govt. Borrowing Down as DMO Issues N50bn Bond at Lower Yields

The Debt Management Office (DMO) has issued N50 billion ($309.31 million) in 3-year and 10-year bonds, with strong demand chasing yields lower than what the government paid at its previous auction last month, a statement from the Office said on Thursday.
The implication is that the cost of borrowing by government will now be lower.
The DMO sold N25 billion in the 3-year paper, maturing in August 2016, at a yield of 13.14 percent, down from last month’s 14.10 percent, while the 10-year bond, maturing in March 2024, fetched 13.10 percent, down from 14.20 percent.
Subscription for the bonds stood at N183.07 billion, lower than N185.56 billion at the previous auction.

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