Lagos - Nigeria sold a total of 140.61 billion naira in treasury bills ranging from three months to one year, with yields fell across the board after a heavy subscription by local and offshore investors, the results of the auction by central bank showed.
Nigeria sold 34.88 billion naira worth of the 3-month bond at a return of 13.84 percent, lower than the 14.0 percent same tenor paper was issued at the previous auction, while it sold 45 billion naira of the 6-month bills at 14.59 percent, compared with 14.94 percent at the previous auction.
The central bank issued 60.73 billion naira worth of 1-year paper at a yield of 14.64 percent, below the 15.07 percent at an auction early in the month.
"The yields were generally lower that market expectation because of he projection of higher inflation figure for the month of March," one dealer said.
However, demand for the paper rose significantly to 540.68 billion naira, its highest in years, compared with 474.51 billion demanded by investors at the April 13 auction.
Nigeria, Africa's second biggest economy after South Africa, issues treasury bills regularly to reduce money supply, curb inflation and help lenders manage their liquidity.