Nigeria Treasury Bill Yields Decline as Bids Double Offer

Nigerian Treasury bill yields declined for a second weekly auction, with bids being made for more than double the 149.3 billion ($938 million) sold.

The Central Bank of Nigeria sold 32.1 billion naira of 91- day bills at a yield of 14.70 percent, 9 basis points lower than the 14.79 percent at an auction on Jan. 25. The bank sold 50 billion naira of 182-day securities at 16.09 percent, 1 basis point lower than the previous sale, and 67.2 billion naira of 364-day notes at 16.89 percent, 0.3 percent lower than at the last sale on Jan. 11, the Abuja-based Central Bank of Nigeria bank said today in an e-mailed statement.

Bids totaled 316.85 billion naira, outstripping the amount sold more than twofold and the most since the Nov. 24 sale.

Nigeria’s consumer inflation rate fell for the first time in four months to 10.3 percent in December, from 10.5 percent a month earlier, the National Bureau of Statistics said Jan. 18.

With the central bank committed to containing inflation, “it appears investors will continue to enjoy attractive returns from purchases of treasury bills,” Gregory Kronsten, chief economist at FBN Capital Ltd. in London, wrote in an e-mailed response to questions.

The central bank maintained its benchmark interest rate at a record high on Jan. 31 to curb inflation after the government partially removed fuel subsidies, boosting gasoline costs.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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