DMO Reduces Interest Rates For July Savings Bond

The Nigerian Debt Management Office has issued a fresh bond on behalf of the Federal Government.

But the DMO in a document released on Monday reduced the rates for the 2-year and 3-year savings bond.

The new rates are 2-Year FGN Savings Bond due July 13, 2024 at 8.075 per cent per annum and 3-Year FGN Savings Bond due July 13, 2025 at 9.075 per cent per annum.

The rates as of June were 2-Year FGN Savings Bond due June 15, 2024 at 8.205 per cent per annum and 3-Year FGN Savings Bond due June 15, 2025 at 9.205 per cent per annum.

This reflects a 13-basis point reduction in the 2-year bond and 13-basis point fall in the 3-year bond, between June and July.

The Central Bank of Nigeria Monetary Policy Rate which was increased by 150 to 13 per cent and global bond trend may have influenced the rates.

In the US, bond yields dipped on the increasing concern about the projected recession in recent weeks as the Federal Reserve tries to hold rising inflation with interest rate hikes.

Experts suggest that the U.S. is already in the midst of a recession, but there is no official declaration.

In the last six months, the interest rates of FGN Savings Bond have been attractive for investors as it has witnessed consecutive increases.