FG sells Treasury bills at yields below inflation

The Federal Government raised N310.14 billion ($985 million) at an auction of treasury bills on Wednesday at yields lower than the inflation rate, the central bank said on Thursday.

The apex bank sold N222billion of one-year treasury bills at a yield of 18.49 percent, lower than inflation at 18.72 percent and compared with 18.44 percent at a previous auction.

A total of N62 billion of the six-month bill was sold at 17.20 percent, slightly higher than 17.15 percent at the previous sale. A total of 26.14 billion of three-month paper was sold at 13.65 percent against 13.69 percent previously.

Subscriptions stood at N312.44 billion against N415.05 billion at the previous auction.

It will be recall that the central bank issues treasury bills twice a month to finance the government’s budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.