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Nigeria to raise N167.51B at Treasury Bills Auction Today

HomeNewsNigeria to raise N167.51B at Treasury Bills Auction Today
Nigeria to raise N167.51B at Treasury Bills Auction Today
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LAGOS, April 20 (Reuters) – Yields are expected to rise at Nigeria’s local currency denominated treasury bills auction on Wednesday in tandem with a higher inflation figure for March and possible increase in interest rates by the central bank at its meeting next month.

Africa’s biggest economy plans to raise 167.51 billion naira ($845 million) in treasury bills with maturities ranging between 3-month and 1-year today.

“The expectation is that yields will be higher following the March inflation figure and policy direction from the central bank governor about proposed higher benchmark rates,” local unit of Citibank said in a note to clients on Wednesday.

Nigeria’s annual inflation rose to a near four year high of 12.8 percent in March from 11.4 percent in February, driven by a rise in food prices.

Last month, the central bank rate-setting MPC raise its benchmark interest rate to 12 percent from 11 percent with indications that interest rate may be hike again at the next Monetary policy committee (MPC) meeting on May 24.

The central bank sold the 3-month bill at 6.10 percent at its last auction on April 6, the 6-month fetched 8.69 percent while the one year paper fetched 9.48 percent.

At the secondary market, the 3-month paper closed at 7.25 percent, 6-month traded at 8.99 percent while the 1-year bill closed at 10.46 percent.

Source: Reuters


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