The Central Bank of Nigeria has sold a total of N147.05bn ($932.91m) in treasury bills, ranging from three months to one year with high demand from investors pushing yields lower.

The CBN, on Thursday, sold N32.05bn worth of the three-month paper at a return of 13.19 per cent, lower than the 13.84 per cent of the same paper that was issued at the previous auction.

The statement said, “The N50bn worth of the six-month paper was issued at 13.87 per cent, compared with 14.59 per cent at the previous auction. The regulator issued N65bn worth of one-year paper at a return of 13.94 per cent, short of the 14.64 per cent at an auction last month.

Demand for the paper remained high as total subscription stood at N513.42bn, a slight drop from N540.68bn demanded by investors at last month’s auction.

Treasury bill yields fell across the board an auction last month when a total of N183.65bn ($1.17bn) worth were issued by the CBN as demand surged to its highest in years.The CBN had sold N30.16bn worth of the 91-day paper at 14 per cent, compared with 14.19 per cent at the previous auction, while it auctioned N73.49bn in 182-day bills at a return of 14.94 per cent, against 15.05 per cent previously.

It issued N80bn worth of the one-year paper at 15.07 per cent, below the 15.57 per cent of an auction last month.

Dealers had said prospects of inflation falling for March and a likely cut in CBN’s benchmark interest rate at its next monetary policy committee meeting were driving down yields on the debt instruments.

Latest data on the CBN website had shown that the regulator would issue a total of N735.63bn worth of treasury bills in 91-day bills, 182-day bills and one year bills in the second quarter.

According to the data, the apex bank will issue 91-day bills worth N160.72bn, while a total of N263.49bn will be issued in the 182-day bills.

The data also showed that the regulator will issue N311.41bn in one-year bills in the second quarter. The total figure will be issued in five different debt auctions.Meanwhile, the Federal Government plans to sell N70bn ($444.59m) worth of sovereign bonds ranging between five and 10 years at its regular auction on May 16, the Debt Management Office said on Thursday.

The debt office said it would sell N35bn each in the five-year and 10-year paper with term-to-maturity of four years and 11 months and nine years and eight months, respectively.

Both bonds are due to mature in 2017 and 2022, respectively, and are re-openings of previous issues.

Source: Punch/Ademola Alawiye