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CBN injects N105.57bln into circulation through payments to investors

The Central Bank of Nigeria (CBN) says     it has injected a total of N105.57 billion into the economy.The injection was done last week through payments made to investors on 30, 90 and 182 days tenor bills.The CBN said in a statement  on Monday in Lagos that it had paid N25 billion to investors through the sale of treasury bills on 91-day and 182-day tenor bills.

The transactions were conducted only at the Open Market Operation (OMO) and the Primary Market Auction segments of the government securities market. A fortnight ago, activities were low at the two segments because the CBN did not sell any bill as they were not available except the repayment made to investors.

It will be recalled that last week, the CBN withdrew a total N55.11 billion from circulation through the sale of tenor bill worth N25 billion at the OMO and N35.11 billion on bills at the PMA. At the OMO segment in the preceding week, the CBN sold 26-day tenor bills worth N5 billion, 29 day tenor bills worth N5 billion respectively. The following day, the apex bank sold 30-day tenor bill worth N15 billion and made a repayment of same amount to investors. It also made a repayment of N8 billion to investors on 30-day tenor bills.According to the statement, the bid and issue rates for the entire bid sold stood at 9.00 per cent respectively.For all the four bills, bidders got all their bid and the bills are expected to mature on Sept. 21, 24, 28 and 27 this year respectively.

At PMA window last Thursday, the CBN issued 91-day tenor bill and 182-day tenor bill all of which were oversubscribed by investors, but the CBN only gave out N15.1 billion and N15 billion respectively.The range of bids and the issue rates on the 91-day tenor bills which matures on Nov. 26, 2009 were between 3.99 and 4.90 per cent while the issue rate stood at between 3.99 and 4.80 per cent while the true yield for the bid was 4.86 per cent The 182-day tenor bill, which will mature on Feb. 6, 2010, had bid rates of 4.93 to 6.15 per cent and issue rates of between 4.93 and 5.50 per cent while the true yield rates on maturity date will be 5.65 per cent.


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