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Treasury bills sales

Nigeria sells ₦133.97 bln Treasury bills, yields fall across board

By on September 30, 2020 0 95 Views

Nigeria sold the total of ₦133.97 billion in Treasury Bills at an auction on Wednesday, with yields falling across the board, the Central Bank of Nigeria (CBN) said.

Details of the treasury bill auction conducted by the CBN on behalf of the Debt Management Office (DMO) showed that subscriptions level were higher than the amount sold at the auction.

Investors were willing to buy up to ₦348.25 billion worth of the bill, but the government settled for only ₦133.97 billion.

Yields on the three moths paper traded at 1.08 percent, below the 1.15 percent prevailing savings deposit rate and the 1.09 percent similar tenor paper was sold at the last auction.

Also, yields on the six months and one-year bills fell to 1.49 percent and 2.80 percent respectively, compared with 1.50 percent and 3.05 percent each at the previous auction.

The regulatory bank sold ₦106 billion with one year paper, ₦17.60 billion in nine months bill and ₦10 billion naira in the three months paper, compared with ₦317.29 billion demanded by investors on the 1 year paper, ₦19.20 billion subscription on the 9-month paper and ₦11.76 billion demanded on the 3-month paper.

Nigeria issue treasury bills twice monthly at auction to raise cash to back government budget expenditure ahead of revenue flow and help commercial lenders to manage their liquidity.

Yields on Treasury bills and other fixed income assets have continued to decline since last year as the government moved to cut costs of borrowing on the domestic debt.

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