Feb 20 (Lagos) - The FGN Bonds auction which was held yesterday was extended till today and only closed this morning after raising less than 1.5 trillion while the offer was for N 2.5 trillion. The yields on the 10-year bond were 19% while the 7-year bond attracted 18.5% too.
Looks like investors want more than the 19% they are getting given the constant devaluation of our currency and the hyper-inflation we are witnessing.
This is ahead of the Nigerian treasury bills Primary market auction which will be held tomorrow to mop up excess liquidity. On the previous T-bill auction the CBN raised more than 1 trillion however the that amount may be lower because of the huge amount they have raised in the FGN bond auction which closed today.
This will obviously have an impact on the stock market which will attract less funds unless we see an inflow of foreign investors with new funds. The stock market is a bit lower this afternoon after the sharp decline from yesterday and power sector stocks like
GEREGU ,
TRANSCORP are in top demand again.
reporting for easykobo.com on Tuesday, Feb 20 2024 from Lagos, Nigeria