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Nigeria’s FGN Bond Auction Sees 530% Oversubscription Despite Rate Cuts
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Investor appetite leaned heavily toward the 7-year bond, which attracted N1.03 trillion in subscriptions compared to just N165.81 billion in August.
The 5-year bond also saw bids rise to N231.79 billion, more than double the previous month’s N102.36 billion.
The 5-year tenor saw allotments rise to N87.80 billion compared to N46.01 billion in the prior month.
Similarly, the 7-year bond compressed from 15.00%–22.00% to 14.95%–19.20%.
Rate Cut and Market SentimentThe record subscriptions came just days after the CBN reduced the MPR from 27.5% to 27%, its first rate cut since 2020.