Investor demand surges for Treasury bills in Nigeria and Kenya

Investor demand for government securities has surged in both Nigeria and Kenya, with recent Treasury bill auctions seeing significant oversubscription.

In Nigeria, the Debt Management Office (DMO) reported that bids for Nigerian Treasury Bills (NTBs) reached N2.64 trillion, more than three times the N750 billion initially offered. Due to this high demand, the DMO increased its allotment to N1.05 trillion. The 364-day NTB saw a decline in its stop rate, falling by 22 basis points to 16.62 per cent, suggesting the government was able to borrow at a lower interest cost due to competition.

Similarly, the Central Bank of Kenya (CBK) recorded strong interest in its September 10 auction, receiving bids totaling Ksh 55.5 billion against an advertised amount of Ksh 28 billion. The 91-day Treasury bill saw the highest interest, with the government accepting Ksh 29.39 billion at an interest rate of 8.767 per cent. Rates across the 182-day and 364-day bills also declined marginally compared to previous auctions.