Rising demand for FG bonds brightens deficit funding

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NIGERIA: Monumental increase in investors’ demand for government securities like Treasury Bills (TBs) and sovereign bonds has enhanced government’s capacity to fund its expected budget deficit of 2.97 percent or N1.105 trillion in the 2012 fiscal year.

 

This is because rising risks in the equities market following a streak of losses; and paucity of viable investment options have further increased investors’ flight to safety and appetite for TBs and bonds, considered safe and more viable. Government’s local debt profile stands at N5.5 trillion with FGN Bond accounting for 62.98 percent; Treasury Bills 30.73 percent and Treasury Bonds 6.29 percent. Click here to continue reading on BusinessDay