Yields on T-bills fall on strong demand

Yields on Nigerian Treasury bills fell by an average of 0.30 percentage points across the board at an auction amid renewed interest in the local market from offshore investors.

The Central Bank of Nigeria (CBN) said, on Thursday, it had sold a total of N183.64 billion ($1.13 billion) worth of treasury bills with maturities ranging from three months to one year in Wednesday’s auction.

The naira has stabilised since last month when the central bank further tightened liquidity to support the local currency, making Nigerian assets more attractive for offshore investors.

In the auction, the bank sold N20.15 billion in 91-day treasury bills at 11.71 percent yield, against 11.90 percent at the previous auction on March 26.

A total of N43.49 billion worth of 182-day paper was sold at 12.84 percent, 0.34 percentage points below the previous auction’s yield. The bank sold N120 billion worth of 364-day paper at 13.04 percent, down from a yield of 13.59 percent seen at a February 19 auction.

Total subscription stood at N534.75 billion compared with N381.58 billion at the previous auction, while demand was heavier for one-year paper, which attracted a total of N381.37 billion at the auction.

Traders said some offshore investors bought more of the one- year paper.

Reuters