Nigeria Sells N202.4bn in T. Bills At Yields Below Inflation

The Central Bank of Nigeria (CBN) sold N202.44 billion ($665 million) worth of treasury bills at an auction on Wednesday at yields lower than the inflation rate, the apex bank said on Thursday.
The amount raised was more than N142.43 billion it had initially proposed, but it increased its offer due to the volume of demand by investors.
The bank raised N140 billion in the 1-year treasury bill at 18.44 per cent, shy of the 18.72 per cent inflation rate for January and compared with 18.54 per cent similar note fetched at the previous auction on February 2.
It issued N30 billion of the 6-month bill at 17.15 per cent, lower than 17.24 per cent at previous auction and a total of N32.44 billion of 3-month paper was sold at 13.69 per cent against 13.79 per cent previously.
Subscription stood at N415.05 billion compared with N602.17 billion at the previous auction.
Nigeria’s central bank issues treasury bills twice in a month to finance the budget deficit, help manage commercial lenders liquidity and curb rising inflation.
Earlier the debt office said it had raised N160 billion ($525 million) in local currency bonds at its second debt auction this year at yields lower than the inflation rate.
© Reuters

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