Investors in Nigeria’s securities are thronging towards fixed income windows as uncertainties mount over the economy that has its share of the COVID-19 pandemic amid intermittent high liquidity.
Incidentally, Nigeria increased marginally the yield on its 1-year
Treasury bond at an auction carried out Wednesday as against
the rate it sold the 3-month and 6-month tenor paper.
Demand for the debt on offer also reflected the increased liquidity in
the money market, which has driven interbank rate down in the week to
Wednesday.
At the auction, the Debt Management Office (DMO) sold a total of
N265.94 billion across all three tenors of Treasury bills on offer against
N468.25 billion total subscriptions from investors.
The debt office sold N161.52 billion worth of the 1-year debt at 3.40
percent, which was higher than the 3.35 percent a similar tenor paper was sold
at the previous auction.
It also sold N54.59 billion of the 6-month Treasury bills at 1.5
percent against 1.8 percent the paper was sold at the last auction, while it
sold N49.83 billion in the 3-month paper at 1.20 percent compared with 1.30
percent the same tenor paper went for previously.
Demand from investors was heavier on the 1-year paper with a total of
N215.09 billion subscriptions, followed by N158.78 billion demanded in the
6-month paper and N94.38 billion subscriptions for the 3-month debt.