Federal government plans to raise N245.18 billion ($773.44 million) worth of Treasury bills with maturities ranging between three months and a year on Aug. 3, traders said on Tuesday citing a central bank Treasury bill calendar.
The CBN plans to issue N45.18 billion in 3-month debt, N80 billion of 6-month paper and 120 billion naira of 1-year bills in a Dutch auction, they said.
Indicative rates for the auction are 16 percent for 3-month, 18 percent for 6-months and 18.5 percent for 1-year bills, one trader said. The auction’s results will be published the day after the sale.
Yields on fixed income securities have been rising in recent months with the central bank mopping up naira liquidity to try to lure back foreign investors who sold naira assets following the plunge in the price of oil, Nigeria’s economic mainstay.
The bank lifted interest rates by 200 basis points last week to 14 percent to help fight inflation, which hit a 10-year high of 16.5 percent in June.
The CBN was not immediately available to comment.