Foreigners stayed away from the Federal Government’s latest Treasury bill auction, the first since the suspension of the Governor, Central Bank of Nigeria, Mr. Lamido Sanusi, in a sign that investor confidence is yet to recover after the banker’s removal.
The government offered N180bn ($1.1bn) in Treasury bills on Wednesday, with a similar amount maturing this week.
It sold N275.09bn, with yields on the 182- and 364-day papers rising further above 13 per cent, the CBN said on Thursday.
Traders said foreign buyers remained on the sidelines and demand was dominated by less risk-averse local investors drawn by the attractive yields, according to Reuters
Foreign participation was “very marginal,” said one analyst. “It’s probably that as those bills mature some international investors won’t roll over the position in the new auctions, so they’ll just take their foreign exchange and leave,” he said, asking not to be named.