The Debt Management Office (DMO), via a statement posted on its website on Wednesday said a total of N60 billion bond it offered for the month of December had been oversubscribed by more than N70 billion.

“DMO offered a total of N60bn at the FGN Bond Auction of December 2020, which was held on December 16. The offer was oversubscribed as total bids received were N134.056 billion, a subscription level of over 220 per cent,’’ it said.

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.

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

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 interest as and when due.

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