The Central Bank of Nigeria sold N150.09bn ($953.56m) worth of treasury bills last week at a regular debt auction with yields on the 91-day and 182-day bills falling, while the 364-day yield inched higher.

The CBN sold N42.97bn of the 91-day treasury bill at a 14.18 per cent marginal rate, down from 14.80 per cent at the previous auction.

It sold N50bn worth in the 182-day bills at 15.48 per cent compared with 15.50 per cent previously, and N57.12bn worth of the 364-day instrument at a marginal rate of 15.57 per cent versus 15.55 per cent at the last auction.

The 364-day papers attracted the highest subscription, with investors bidding for a total of N160.58bn.

Traders said most off-shore investors prefered investing in the longer-dated bills.

Total demand stood at N328.78bn compared with N476.86bn at the last auction.

The CBN issues treasury bills regularly as part of monetary control measures to help lenders manage their liquidity.

The CBN, last month, sold N149.65bn ($953.00m) worth of treasury bills with yields on the 182-day and 364-day papers lower than the previous auction, while the 91-day yields rose slightly.

A statement by the CBN had said that it sold N44.65bn of the 91-day treasury bill at a 14.80 per cent rate, up marginally from the 14.70 per cent yield at the previous auction.

It sold N20bn worth of the 182-day bills at 15.50 per cent, lower than the 16.09 per cent previously, and N85bn in the 364-day instrument at a marginal rate of 15.55 per cent, compared with 16.89 per cent at the last auction.

Traders had attributed the falling yields on the longer dated treasury bills to the surge in demand from offshore investors.

The apex bank, at its third auction this year, sold N67.22bn in 264-day paper at 16.89 per cent, N50bn in 182-day at 16.09 per cent and N32.06bn of 91-day bills at 14.70 per cent.

Total subscription level rose to N476.86bn, compared with N316.85bn at the last auction, underscoring the increased interest in the local debt instrument by both offshore investors and local banks.

Source: Punch/Ademola Alawiye