Inflation fears drive demand as CBN raises T-Bill yields

Investors seeking safer and more rewarding places to keep their money have poured funds into Nigeria’s Treasury bills market, prompting the Central Bank of Nigeria (CBN) to increase interest rates on its latest auction.
The move comes as inflation, which stood at 15.93 per cent in May, continues to erode the value of savings and investments, forcing investors to demand higher returns.
At its Treasury bills auction on Wednesday, June 17, the CBN sold N1.49 trillion worth of bills, well above the N1 trillion initially offered, after receiving bids totaling N1.86 trillion. The strong demand showed that investors are increasingly turning to government securities to protect their money ag...