(Reuters) – Nigeria sold 134.9 billion naira ($833 million) in treasury bills of three-month, six-month and one-year maturities, with three-fifths fetching lower yields than at the previous auction, the central bank said on Thursday, a day after the sale.
The central bank on Wednesday sold 34.88 billion naira in the 3-month paper at 9.84 percent, compared with 9.95 percent at the previous auction on July 9. It sold 48 billion naira in the 6-month debt note at 10.10 percent, 14 basis points lower than the 10.24 percent at the previous auction.
A total of 52 billion naira was sold in the one-year paper at 10.40 percent, higher than 10.34 percent similar-tenor paper fetched at the June 25 auction, the last time such paper was sold.
Demand for the debt was 305.74 billion naira, driven by high level of excess liquidity in the banking system, traders said.
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Why do I get the feeling the banks are pumping in liquidity to drive these rates lower?