Investors Pour In To Buy Nigeria's Treasury Bills
It's raining cash at the moment and the Nigerian government is almost overwhlemed by demand outweighing its supply.
Nigeria has to lower the yields it offered at a treasury bill auction on Wednesday to raise 130 billion naira ($425.3 million) after investors submitted bids four times in excess of the amount it wanted to sell.
The Debt Management Office (DMO) sold 129.77 billion naira in 91-day, 182-day and 364-day bills at the auction but received bids totalling 526.36 billion naira.
Traders said the DMO sold the one-year paper at 15.72 percent to fetch 106 billion naira, lower than 17 percent it paid at the last auction. It also reduced the rate it paid for the 182-day bill to 15.49 percent.
Investors bid as much as 18 percent for one-year debt and as low as the 13.25 percent it paid for the three-month note.
Reports suggest the DMO is planning a series of eurobonds, part of which it intends to use to repay some of its local treasury bill holdings already worth 2.7 trillion naira.
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