Nigerian Eurobond Yields at Week Low on T-Bill Demand

Nigeria’s Eurobond yields fell to the lowest in more than a week as investors placed orders for more than four times the amount of Treasury bills offered at an auction.

Yield on the $500 million of debt due January 2021 declined eight basis points to 4.351 percent as of 3:45 p.m. in London, the lowest on a closing basis since Feb. 13, according to data compiled by Bloomberg. The naira gained less than 0.1 percent to 157.25 a dollar.

The Central Bank of Nigeria sold 135.65 billion naira ($862 million) of bills yesterday, including 25.65 billion naira of 91-day bills at a yield of 9.416 percent, it said today in an e-mailed statement, the lowest since September 2011. Bids amounted to 529.94 billion naira. The nation’s inflation rate fell to 9 percent in January from 12 percent in December, the statistics bureau said Feb. 18.

“Favourable outlook of the economy has been reflected in rising local and offshore interest in various debt securities of the country,” Kunle Ezun, a Lagos-based analyst at Ecobank Transnational Inc., said in a telephone interview today.

The foreign-currency reserves of Africa’s most populous country have advanced 6 percent this year to $46.9 billion, the highest since at least 2010, according to Feb. 19 data compiled by the central bank.

The yield on the country’s 16.39 percent domestic bonds due January 2022 rose eight basis points to 10.48 percent, according to today’s data compiled on the Financial Markets Dealers Association website.

Ghana’s cedi declined 0.2 percent to 1.9085 per dollar in Accra, the capital.

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