LAGOS, March 16 Nigeria's central bank said on
Thursday it had sold more treasury bills than originally planned
at an auction after it lured demand for one-year debt with
yields above inflation.
The bank raised 253.8 billion naira at an auction on
Wednesday, 40 billion naira more than it had offered to sell.
It offered the one-year bill at 18.55 percent to raise 166.3
billion naira, against a yield of 18.49 percent at its last
auction and higher than February's inflation rate of 17.78
The central bank has been selling bills with yields below
inflation in recent months to curb borrowing costs as it aims to
fund half of this year's forecast budget deficit of 2.36
trillion naira ($7.50 bln) through the domestic debt market.
Yields on the six-month bill were unchanged from the last
sale at 17.20 percent to fetch 48.5 billion naira, while a 39.0
billion naira bill due in three month was sold 13.60 percent
against 13.65 percent previously.
Total demand stood at 216.38 billion naira against 312.44
billion naira at the last sale.
On Thursday, the debt office also issued more bonds than it
originally planned at an auction after slowing inflation rate
helped it offer debt at lower yields.
The central bank issues treasury bills twice a month to
finance the government's budget deficit and help lenders manage
liquidity and curb inflation.
($1 = 305.50 naira)
(Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha and