Apex bank to sell N132bn in treasury bills

The Central Bank of Nigeria has announced plans to sell N132.06bn in 91-, 182- and 364-day treasury bills at its regular debt auction this week.The bank said it would sell N39.27bn in 91-day paper, N45bn in 182-day treasury bills and N47.78bn in 364-day bills on Wednesday, using the Dutch auction system.According to the CBN in a notice last week, the amount on offer will be according to existing market demands during the period, adding that the development will help lenders manage liquidity concerns."The bank reserves the right to vary the amount on offer in line with market realities prevailing as at the period of auction," the bank said.As part of measures to curb inflation and reduce money supply, the CBN at regular intervals issues treasury bills to support the economy.Mid last month, the bank sold a total of N201.82bn in 91-, 182- and 364-day treasury bills at its regular auction as yields reflected the 275 basis points increase in the Monetary Policy Rate at the time.The regulatory bank sold N70.15bn in the 91-day bill at 15 per cent marginal rate, N63.49bn in 182-day paper at 16 per cent, and N68.18bn in the 364-day bill at 16.22 per cent.Reuters reported that the papers were sold at a lower marginal rate at the last auction in September with the 91-day paper attracting 10.23 per cent, 182-day,10.85 per cent and 364-day, 11.24 per cent.The CBN had raised the MPR, otherwise called the benchmark interest rate, from 9.25 per cent to 12 per cent, representing an increase of 275 basis points.It had also increased the Cash Reserve Ratio to eight per cent from four per cent. The Monetary Policy Committee had in September decided to reduce the net open position to one per cent of shareholder funds from five per cent, but later moved it up to three per cent after persistent complaints from industry stakeholders.
Click here to read full news..