The Central Bank of Nigeria has sold N100.62bn ($619.0m) in treasury bills with 91-day and 182-day maturity at its bi-monthly auction, with mixed yields compared with the previous auction.

A statement by the bank on Friday said it sold N37.49bn worth of the 91-day paper at a return of 14.05 per cent, lower than the 14.10 per cent at the previous auction, while it issued N63.13bn worth in 182-day bills at 15.31 per cent compared with 14.94 per cent at the previous auction.

Total subscriptions, according to the CBN, stood at N152.69bn, but the apex bank stuck to its initial amount offered.The bank had said last week that it would issue N841.32bn worth of treasury bills in 91-day bills, 182-day bills and one year bills in the third quarter.

According to latest figures from the CBN website, the bank will issue 91-day bills worth N220.05bn, while a total of N381.27bn will be issued in the 182-day bills.

A publication by the bank shows that N240bn in one-year bills would be issued in the third quarter. The total figure will be issued in seven different debt auctions.

Dealers said the drop reflected lacklustre demand from foreign investors to roll over maturing treasury T-bills, leading to an exit of foreign capital that had been invested heavily in the first and earlier parts of the second quarter.

The CBN issues treasury bills regularly as part of monetary control measures to help lenders manage their liquidity. Also, the Debt Management Office said it plans to sell N83.91bn ($515.26m) worth of sovereign bonds ranging between five and 10 years at its regular auction on June 27. The debt office said in a statement that it would sell N30bn each in five-year and seven-year paper, while it hopes to auction N23.91bn worth of the 10-year instrument.

According to the statement, two of the bonds, the five-year and 10-year, are re-opening of previously issued ones, while the seven-year paper is a fresh issue. The five-year bond has a term-to-maturity of four years and 10 months, while the 10-year will mature in nine years and seven months time.

Source: Punch/Ademola Alawiye