CBN realises N75bn more than planned from treasury bills auction

Central bank of Nigeria CBN raised a total of N559 billion, N75 million more than it planned for originally from an auction of treasury bills. Money market report showed that it received subscriptions for almost four times the amount of debt initially it initially put on offer.

The bank raised a total sum of N215.88 billion at the auction which is N75 billion more than planned, with the one-year paper accounting for most of the debt. Total subscription at the auction stood at N559 billion. Investors bid as much as 18.9 percent for the one-year debt and as low as 13.15 per cent for the three months note.

The bank raised N22.78 billion in three month bills at 13.15 per cent, 24.74 billion in six month bills at 16.8 per cent and 168.36 billion in one-year bills at 17 per cent. Traders said foreign investors sold dollars last week in anticipation of the auction, boosting demand for the bills and also liquidity on the currency market.

However currency market liquidity waned on midweek as some international investors were waiting to see where they yields would end up, they said. The central bank issues treasury bills twice a month to help the government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.