Increasing Demand Drags Treasury Bill Yields to 14-Month Low 

In spite of very negative reports about the country occasioned by Boko Haram induced crisis, investors have continued to show more interest in the country’s economy with investors’s demand for treasury bills rising 20 percent in April.
It will be recalled that despite actions by the notorious Boko Haram to scare investors away from the just concluded World Economic Forum, the biggest ever economy forum in Africa, the respond was a success.
The Federal Government’s domestic borrowing costs dropped to the lowest level since March 2013 as a strengthening naira eased pressure on inflation and bolstered demand for the debt of Africa’s largest economy. According to Bloomberg, the Central Bank of Nigeria sold N157bn ($973m) of 91-, 182- and 364-day Treasury bills on May 7, with yields of all the notes retreating. Investors’ demand rose 20% from the previous auction on April 23, according to data compiled by Bloomberg.

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