Nigeria sells Treasury bills at yields below inflation

LAGOS: Nigeria raised 310.14 billion naira ($985 million) at an auction of treasury bills on Wednesday at yields lower than the inflation rate in Africa's biggest economy, the central bank said on Thursday.

The bank sold 222 billion naira 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 62 billion naira 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 312.44 billion naira against 415.05 billion naira at the previous auction.

Nigeria's central bank issues treasury bills twice a month to finance the government's budget deficit, help manage commercial lenders' liquidity and curb rising inflation.