FG sells N134 billion in T-bills

Nigeria sold N134.5 billion($825.9 million) in treasury bills with mixed yields on Wednesday, the central bank said on Thursday, amid lower subscription levels compared with its auction last week.

The bank sold bills with maturities ranging from 3 months to one year and received subscriptions of N314.3 billion for the notes. Demand at a similar auction last week stood at N404.32 billion.

With Wednesday’s issue, Africa’s biggest economy has raised N440.68 billion ($2.7 billion) in treasury bills this month as it seeks to manage money supply in the system, curb inflation and help government plug funding gaps in its budget.

It has said it will raise N936.92 billion ($5.76 billion) in treasury bills in the coming three months.

The bank issued N21.53 billio for 3 months on Wednesday at a yield of 9.95 percent, down from the 9.9 percent it fetched at a previous auction on June 18.

It raised 31.83 billion naira for 6 months at a yield of 10.25 percent, as against 10.38 percent last week, and issued the one-year bill at 10.34 percent yield to raise 81.2 billion naira. It sold the one-year note at 10.39 percent on June 18.

Wire Reports