CBN Raises N136billion in Treasury Bills

The Central Bank of Nigeria, CBN, has sold N136.24 billion in Treasury Bills with maturities from three months to one year at its first auction of 2016.

T-bills are marketable money market securities used to raise money for the government and also help in monetary policy management of the Central Bank. T-bills are short-term.

The auction, held on Wednesday, JAnuary 6was at higher yields than previously, the central bank said on on Thursday, January 7.

The apex bank sold N55.4 billion of three-month paper at four per cent, up from 3.62 per cent at a sale on December 23.

It also sold 25 billion naira of six-month debt at 6.99 percent against 6.19 percent, and 55.84 billion naira of one-year paper at 8.05 percent compared with 7.45 per cent.

Total demand stood at N311.5 billion compared with N226.97 billion last time.

The main investors in government securities are mainly pension funds and commercial banks which control more than 60 per cent of the market, followed by insurance funds and a few micro-finance institutions.