The Central Bank of Nigeria, CBN, on Tuesday, April 26, said it plans to raise N150.6 billion from the sales of Treasury bills with maturities ranging from three months to one year on May 8, 2016.
The apex bank said it will raise N45.17 billion in 3-month bills, N23.43 billion in the 6-month paper and N82 billion in one-year debt. Yields on Treasury Bills rose significantly across the board at the April 20 auction, reflecting rising inflation, which rose to 12.8 percent in March, from 11.4 percent the previous month.
A total of N35 billion worth of the 6-month Treasury bill had been sold at 8.99 percent at the April 20 auction against 8.69 percent at the previous auction, while N95.73 billion of the 1-year Treasury bill was sold at 10.24 percent compared with 9.48 percent previously.
The level of Investors demand also dropped as the total subscription was N253.19 billion much lower than N445.86 billion subscription at the last auction.