CBN raises N183bn T-bills at lower yields

The Naira and dollar

The Central Bank of Nigeria has raised N183.64bn ($923m) in Treasury bills with yields falling compared with the previous sale last month.

The Treasury bill yields fell in accordance with declining yields on fixed assets on renewed investor interest in the local debt market after a peaceful presidential election.

The CBN on Thursday said it raised N20.15bn in the three-month debt at 10.5 per cent at the auction held on Wednesday compared with 10.69 per cent at the March 25 auction.

The bank also sold a total of N33.49bn worth of the six-month paper at 14.1 per cent, lower than 14.55 per cent at the previous auction.

The bank raised N130bn of the one-year note at 14.15 per cent, down from 14.85 per cent at the last auction.

Investors – mostly domestic banks and pension funds – submitted bids worth a total of N433.13bn against N297.06bn at the last month’s auction.

Three weeks ago, the central bank sold Treasury bills worth N167bn.

The CBN is planning to issue Treasury bills worth N995.5bn ($5bn) during the second quarter of this year.

It said the bills would have tenors of between three-month and one-year maturities, according to the debt issuance calendar.

The central bank said it would issue a total of N202.25bn of the three-month debt note during the period, and a total of N236.81bn worth of the six-month tenor; a total of N556.46bn worth of the one-year paper would be sold during the period.

A total of N945.5bn worth of Treasury bills issued earlier will be due for repayment during the same period.

The central bank had over two weeks ago sold Treasury bills worth N254bn ($1.3bn). The yields on the debt notes were higher compared with a record on February 18.