Nigeria’s Treasury Bills (NTB) yields rose sharply at the latest primary market auction, with the benchmark one-year paper closing at its highest stop rate in about five months as the government sought to absorb strong investor demand amid rising inflation expectations.
“The latest Treasury Bills auction closed with rates rising across all tenors, with the largest increase on the 364-day bill,” said Ayodeji Ebo, managing director of Afrinvest Securities.
“The one-year tenor remained the major attraction, with subscriptions of N1.66 trillion against an offer of N800 billion, showing continued strong appetite for longer-dated government securities.” Ebo said
Results from Wednesday’s Treasury Bills Primary Market Auction showed the 364-day instrument recorded a stop rate of 17.34 percent, up from 16.35 percent at the previous auction held on June 3.
The increase of 99 basis points pushed the true yield on the instrument to 20.98 percent, restoring returns above the 20 percent
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