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FGN bond oversubscribed by N70bn- DMO

chuks oti

Dec 24, 2020

DMO stated that the rates of 6.945 per cent and 7.000 per cent for the 15-year and 25-year FGN Bonds, were higher than the rates of 5.000 per cent and 5.785 per cent at the last auction in October.

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"The rates reflect the level of interest rates in the market influenced in part by Monetary Policy Actions,'' it said.

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FGN Bonds are debt securities issued by the DMO for and on behalf of the Federal Government and the government has an obligation to pay the bondholder the principal and agreed on interest as and when due.

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The Federal Government issues Bonds for some of the following reasons: To finance government fiscal deficits in a non-inflationary and sustainable manner, to enhance the fiscal discipline of the Government, to refinance maturing debt obligations and to establish benchmark yield curve.

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