Treasury bill yields edge higher as investors flock to one

Nigeria’s Treasury bill yields rose modestly at Wednesday’s primary market auction, even as strong investor demand continued to support the market. This is despite sustained liquidity conditions and a continued preference for risk-free government securities. Auction results released by the Central Bank of Nigeria (CBN) showed the benchmark 364-day Treasury bill closed at a stop rate of 16.35 percent, up from 16.15 percent at the previous auction held on May 20. The one-year instrument remained the dominant attraction for investors, recording subscriptions of N1.95 trillion against an offer of N500 billion. The CBN eventually allotted N1.24 trillion on the tenor, accounting for the bulk of total allocations. “The latest Treasury Bills auction closed with strong demand, especially on the 364-day paper, as investors continued to lock in attractive yields,” said Ayodeji Ebo, managing director of Afrinvest Securities. According to the auction data, the 91-day bill recorded subscriptions of N131.18 billion against an offer of N100 billion, with full allotment. Its stop rate increased to 16.05 percent from 15.95 percent at the previous auction.