Nigeria’s one-year bill auction was oversubscribed by more than two times after the central bank hiked the interest rate on the short-term debt obligation to attract investors, in a sign that tighter monetary policy is on its way.
The Abuja-based Central Bank of Nigeria sold 908.75 billion naira ($632 million) of the bills to both local and foreign investors at rates that were nearly twice the level of previous offers. Yields on the offering rose to 19%, the highest in 12 years, from 11.5% at the previous auction on Jan. 24.