Investors Purchase N2.61trn FG Bonds in Q1 2023 as Yield Fall Below Inflation Rate

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In the first quarter of 2023, domestic investors bought N2.61 trillion worth of FGN Bonds, of which N1.89 trillion was ultimately distributed due to the 10-Year Bond yield dropping below the inflation rate.

To pay the anticipated budget deficit for 2023, the federal government has proposed borrowing more than N11 trillion. A subscription for the auction in March was N807.9 billion, more than double the amount offered by 124%.

The total amount allocated was N563.3 billion, with the 20-year bond receiving the highest subscription of N355.633 billion.

Four bonds were reopened at the auction in February: 13.98% FGN FEB 2028 (10-year bond), 12.50% FGN APR 2032 (10-year bond), and 16.249% FGN APR 2037. (20-year bond)

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