CBN Sells ₦202.4b in Treasury Bills

Nigeria's central bank sold 202.44 billion naira ($665 million) worth of treasury bills at an auction on Wednesday at yields lower than the inflation rate in Africa's biggest economy, the bank said on Thursday.

The amount raised was more than 142.43 billion naira it had initially proposed, but it increased its offer due to the volume of demand by investors.

The bank raised 140 billion naira in the 1-year treasury bill at 18.44 percent, shy of the 18.72 percent inflation rate for January and compared with 18.54 percent similar note fetched at the previous auction on Feb. 2.

It issued 30 billion naira of the 6-month bill at 17.15 percent, lower than 17.24 percent at previous auction and a total of 32.44 billion of 3-month paper was sold at 13.69 percent against 13.79 percent previously.

Subscription stood at 415.05 billion naira compared with 602.17 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 160 billion naira ($525 million) in local currency bonds at its second debt auction this year at yields lower than the inflation rate.