February 10, 2012 By Ademola Alawiye
Nigerian treasury bill yields declined for a second weekly auction, with bids being made for more than double the N149.3bn ($938m) sold. The Central Bank of Nigeria sold N32.1bn of 91- day bills at a yield of 14.70 per cent, nine basis points lower than the 14.79 per cent at an auction on January 25.According to a statement by the apex bank, the bank sold N50bn of 182-day securities at 16.09 per cent, representing one basis point lower than the previous sale, and N67.2bn of 364-day notes at 16.89 per cent, 0.3 per cent lower than at the last sale on January 11.Bids totalled N316.85bn, outstripping the amount sold more than two fold and the most since the November 24 sale. With the CBN committed to containing inflation, Bloomberg quoted the Chief Economist at FBN Capital Limited in London, Mr. Gregory Kronsten, as saying, “it appears investors will continue to enjoy attractive returns from purchases of treasury bills.”
Meanwhile, the naira strengthened for a third day as oil producers sold dollars to fund operations in the country and after the government sold bills. The currency advanced as much as 0.9 per cent to N158.60 per dollar, the strongest level in more than a week, before trading at 0.5 per cent higher at N159.15 on the inter-bank market.