Following the need to finance the 2022 budget deficit, the federal government through the Debt Management Office , in 2022, raised a whopping sum of N3.06 trillion from the bond market, the debt office monthly auction results has revealed.
THISDAY gathered that the FGN bonds in the first half of 2022 recorded 37 per cent oversubscription to N3.02 trillion when N1.13 trillion was amount offered by DMO.However, in the second half of 2022, the DMO allocated N1.23trillion to investors when it seeks to raise N1.35trillion. The total amount of subscriptions was N1.63trillion in the second half of 2022.
The pension funds industry portfolio in the FGN Bonds increased to N8.84trillion as of October 2022, representing an increase of N489.9billion or 5.86 per cent from N8.35trillion reported by the National Pension Commission . “We maintain our view of an uptick in bond yields in the medium term, as the FGN’s borrowing plan for 2023FY and expected fiscal deficit point towards an elevated supply,” according to analysts at Cordros Research.