CBN Raises N111billion In Treasury Bills At Higher Yields

Nigeria sold N110.93 billion naira ($557.44 million) worth of short-dated Treasury bills at an auction on Wednesday, May 18.

The action generated higher yields than at the previous sales reflecting the sharp spike in inflation growth in the nation, The Central Bank data showed on Thursday, May 19.

The apex bank sold N32.43 billion in the three-month paper at 8.10 per cent, compared with 7.99 percent at the last auction on May 4.

A total of N22.82 billion of the six-month bills were sold at 9.20 per cent against 9 percent previously, while N55.68 billion of the one-year debt was sold at 12.48 per cent compared with 11.05 per cent previously.

Investors demanded a total of N216.5 billion against N261.52 billion subscription at the last auction.

Annual inflation in Nigeria quickened to a near six-year high of 13.7 per cent in April, from 12.8 per cent the previous month in part due to rising petrol and electricity prices, the National Bureau of Statistics said on Monday, stoking expectations of another rate hike.

Nigeria’s rate-setting Monetary Policy Committee (MPC) is scheduled to meet on Tuesday to take a decision on benchmark interest rates and other financial tools to curb growing inflation in the West African country.