LAGOS: Yields on Nigeria's treasury bills fell at its bi-monthly auction, dealers said on Thursday, as they were oversubscribed, particularly by foreign investors, whose strong demand also pushed up the local naira currency .
The central bank was due to release the amount it sold at Wednesday's auction. It had planned to auction 142.97 billion naira, of which 32.9 billion naira was in 91-month bills, 50 billion naira in 182-day paper and 60 billion naira in 364-day notes.
The bank auctioned the 91-day bill at 13.64 percent, the 182-day paper at 13.80 percent and 364-day note at 13.87 percent, dealers said, between 36 and 100 basis points lower than what it had offered at its previous auction last month.
Dealers said there was strong demand for Tbills from foreign players, which also pushed the naira up to 157.85 naira to the dollar by 0932 GMT on Thursday, firmer than Wednesday's close of 158.20.
The bank sold 30.65 billion naira in 91-day paper at 14 percent at its last auction, while it auctioned 20 billion naira in 182-day notes at 15.08 percent on August 24. It did not sell 364-day notes at the last auction.
Nigeria issues treasury bills regularly to curb money supply, contain inflation and help lenders manage liquidity.
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