By Dipo Olowookere
Last week, in line with expectations, the Central Bank of Nigeria (CBN) crashed the stop rates of treasury bills to a single digit and this killed interest some investors had in the investment tool.
Before now, investors have had huge appetite for the government debt instrument because of its yield, but since the interest rate on T-bills has fallen below inflation rate in Nigeria (11.61 percent in October), that option is already being closed.
However, Nigeria’s West African neighbour, Ghana, is another destination those hungry for high treasury bills yields might consider exploring because the country is offering attractive returns.
Business Post reports at the last treasury bills sales conducted last week by the Bank of Ghana (BOG), the investment tool was offered as high as 17.91% percent.
Results of the exercise conducted last week showed that the 91-day bill cleared at 14.69 percent, the 182-day bill at 15.14 percent and the 364-day bill at 17.91 percent.
A week earlier, when the BOG approached the market with T-bills, it sold the 91-day instrument at 14.69 percent, the 182-day tenor at 15.13 percent and the 364-day maturity at 17.92 percent.
When the CBN conducted the sale of treasury bills at the primary market last week, it sold the 91-day bill at 7.80 percent, the 182-day bill at 9.00 percent and the 364-day bill at 10.00 percent.
Two weeks before the previous exercise, the 91-day bill cleared at 9.50 percent, the 182-day bill at 10.45 percent and the 364-day bill at 11.50 percent.
Business Post gathered that Ghana will auction another treasury bills this week and may offer the debt instrument at higher rates to attract Nigerian investors, who might be ready to move their funds to the country because of recent improvements in the economy.
The CBN is expected to sell treasury bills at the primary market next and may be reluctant to lower the rates further so as not to scare away investors from the country.
Adedapo Adesanya