Nigeria T-Bill Yields Fall to 17-Month Low on Demand

Nigeria’s Treasury bill yields fell to the lowest in 17 months at an auction as bids were almost four times the amount on sale, boosted by offshore demand for the country’s debt.

The Central Bank of Nigeria sold 135.65 billion naira ($862.4 million) of treasury 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 Sept. 29, 2011. Bids amounted to 529.94 billion naira, it said.

“Single-digit inflation rate and offshore investors pushing for attractive yield are causing the rally in treasury securities,” Kunle Ezun, a Lagos-based analyst at Ecobank Transnational Inc., said in a telephone interview today.

The nation’s inflation rate fell to 9 percent in January from 12 percent in December, the lowest level since April 2008, as the effect of a year-earlier reduction in fuel subsidies dropped out of the calculation, the Abuja-based National Bureau of Statistics said Feb. 18.

The central bank also sold 30 billion naira of 182-day bills at 9.917 percent and 80 billion naira of 364-day securities at 10.54 percent.

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