FG plans N95bn bond auction today

The Federal Government plans to sell N95 billion of bonds today, the Debt Management Office, DMO, has said.

Data obtained from the DMO said it would sell N35 billion of a bond maturing in 2036, N25 billion of paper maturing in 2026 and N35 billion of debt maturing in 2021, using the Dutch auction system.

Results of the auction are expected to be released Thursday. All the bonds on offer are reopenings of previous issues.

Yields in the secondary market in the last one week have slightly inched upward.

Analysts at Capital Bancorp noted that due to current market conditions, yields at the primary auction may close around the current yields in the market.

“Following the above, the yields at which Capital Bancorp will bid at this auction through a licenced Primary Dealer and Market Maker, PDMM, are 14.5 per cent, 15 per cent and 15 per cent respectively.

The country issues sovereign bonds monthly to support the local bond market create a benchmark for corporate issuance and fund its budget deficit.

The government plans to borrow about N900 billion locally to finance part of the N2.2 trillion deficit in its 2016 budget. It is also seeking advisers and bookrunners to manage a planned $1 billion Eurobond sale this year.

However, the overnight lending rate rose to 22 percent on Friday from 13 per cent last week due to tight liquidity worsened by banks inability to get access to their balances with the regulator.

The banks were demanding as high as 25 per cent to place funds on the market overnight and that a technical glitch at the central bank’s system which started last month had not been resolved.

“There was no cash flow to the system this week because of no treasury maturity,” one trader said.

Comments

Chelsea preparing world-record Bonucci bid

Chelsea owner Roman Abramovic has told manager Antonio Conte that a January move for Juventus defender Leonardo Bonucci could be on the cards. According to reports from the Telegraph, the Russian businessman is prepared to bankroll a number of new signings in the New Year as the Blues look to retain the Premier League trophy. Bonucci would command a world-record fee for a defender, expected to be in the region of £50 million, should he move to Stamford Bridge.

Turkey bomb victims ‘mostly children’surviving

Most of the victims of the bombing of a Kurdish wedding party in the Turkish city of Gaziantep on Saturday were children, media reports have said. Twenty-nine victims were under the age of 18, reports said, with one official saying 22 were under the age of 14. The death toll rose to 54 yesterday. The suicide bomber himself was a child aged between 12 and 14, President Recep Tayyip One woman lost four children in the attack, Emine Arhan, said yesterday: “If it wasn’t for my only surviving child, I would have killed myself.” Another victim was a nine-year-old girl who had stayed on at the party to see the bride after her parents had left, according to reports. A disproportionately large number of women and children were killed in the attack because it targeted henna night, a part of the celebration attended mainly by women and children. Turkish officials said the type of bomb used, which contained scraps of metal, was similar to those used in previous attacks on pro-Kurdish gatherings. ...

Conte: Chelsea must learn to kill matches

Chelsea manager Antonio Conte says his side must learn to kill off matches quicker following their 3-2 League Cup win over Bristol Rovers. Michy Batshuayi scored two goals either side of a Victor Moses strike at Stamford Bridge to send the home side into the third round, but they were given a fright when the visitors twice halved a two-goal deficit through Peter Hartley and an Ellis Harrison penalty. The victory is Conte's third in competitive matches as Chelsea boss, following 2-1 wins over West Ham and Watford in the Premier League - both of which came about thanks to late goals from Diego Costa. And the former Italy boss wants his players to become more ruthless in their approach in order to prevent similarly nervy encounters in future. "These games are very tough," he told BBC Radio London Sport. "When you dominate the game, you must kill the game. In this case, we didn't do this. "It's a pity because when you're playing very well, creating a lot...

Welcome to EagleWatch

Search This Blog