The risk free side of the money market has been experiencing a drop in yield lately. Last week Treasury Bills yield dropped back to back as well. It appears investors are all rushing to the safety of risk free securities amidst rising inflation and an unpredictable stock market.
Nigeria sold 100 billion naira ($618 million) worth of bonds with maturities ranging between three and 20 years at auction on Wednesday at yields lower than previously, the Debt Management Office said on Thursday.
The debt office sold 15 billion naira of three-year paper at 11 percent, lower than 11.35 percent at its June auction, and 50 billion naira of 10-year debt at 12.19 percent compared with 12.24 percent. A total of 35 billion naira of the 20-year debt note at 12.14 percent.
The 3-and 10-year were reopenings of previous issue, while the 20-year paper was a new issue.
Demand for the bonds was 263.91 billion naira.