Nigeria’s longer-term treasury bills are attracting much interest from investors, especially the 364-day instruments.
The Debt Management Office (DMO) offered ₦530 billion in treasury bills at a recent auction on behalf of the Central Bank of Nigeria.
The amount was split as follows: ₦50 billion for 91-day bills, ₦80 billion for 182-day bills, and ₦400 billion for 364-day bills.
With a stop rate of 21.80%, the 364-day bills garnered a substantial subscription of ₦2.49 trillion. The 364-day bills received most of the ₦756.01 billion allocated overall.
According to analysts, investors prefer locking in money for longer periods in high-interest-rate environments to reduce the reinvestment risks associated with shorter-term securities. The strong demand for the 364-day Treasury bills demonstrates this need.
Increased demand for fixed-income assets denominated in naira has caused a small fall in the average yield on Nigerian Treasury bills in the secondary market. Across the curve, yields have slowed, especially at the long end, indicating cautious optimism among investors.
The DMO offers openness and updates on treasury bill offerings by frequently posting auction results and other data on its official website.
