The debt office raised N48.10 billion of three-month paper at 14 per cent, down from 14.38 per cent during August 31 auction and sold N48.45 billion worth of the six-month paper at 17.77 per cent, higher than 17.50 per cent previously.
A total of N86.69 billion was sold in the one-year debt at 18.48 per cent against 18.42 per cent at the last auction. The T-bills’ maturities range between three months and a year and would be raised today, according to the CBN.
T-bills are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.
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.
Yields on fixed income securities have been rising in recent months with the CBN mopping up naira liquidity to try to lure back foreign investors who sold naira assets following the plunge in the price of oil, Nigeria’s economic mainstay.
The bank lifted interest rates by 200 basis points last week to 14 per cent to help fight inflation, which hit a 10-year high of 16.5 per cent in June.
