Central Bank of Nigeria, CBN, data showed yesterday that the federal government sold N110.93 billion ($557.44 million) worth of short-dated Treasury bills at an auction on Wednesday with higher yields than at the previous sales reflecting the sharp spike in inflation growth in Africa’s biggest economy.
The CBN sold N32.43 billion in the three-month paper at 8.10 percent, compared with 7.99 percent at the last auction on May 4. A total of N22.82 billion of the six-month bills were sold at 9.20 percent against 9 percent previously, while N55.68 billion of the one-year debt was sold at 12.48 percent compared with 11.05 percent previously.
Investors demanded a total of N216.5 billion against N261.52 billion subscription at the last auction.
Annual inflation in Nigeria quickened to a near six-year high of 13.7 percent in April, from 12.8 percent the previous month in part due to rising petrol and electricity prices, the National Bureau of Statistics said on Monday, stoking expectations of another rate hike.
Monetary Policy Committee, MPC, the CBN’s rate-setting arm, is scheduled to meet on Tuesday to take a decision on benchmark interest rates and other financial tools to curb growing inflation in the country.

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