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CBN mops up N45.8bn from circulation

The CBN has mopped a total of N45.8 billion from circulation through the sale of treasury bills. The apex bank said in a statement that it withdrew the amount through the sale of 91 and 182-day tenor bills.
A copy of the statement was made available to newsmen on Monday in Lagos.

The bills were oversubscribed as the bidders demanded N26.14 billion for the 91-tenor bills and N71.46 billion for the 182-day tenor bills at the Primary Market Auction (PMA). But the apex bank only sold N15 billion worth of the 91-day tenor bills and N30.78 billion of the 182-day tenor bills.

The range of the two bid rates during the trading stood between 3.9999 per cent and 5.5 per cent for the 91-day tenor bills and 4.9900 per cent and 7.249 per cent for the 182-day tenor bills.  Also, the issue rates for the two bills hovered between 3.9999 per cent and 5.7450 per cent respectively.

The true yield at the end of investment on the 91-day tenor bill, which matures on Jannuary 26, 2010, would be 4.9606 per cent while the 182-day bill, which matures on April 26, 2009, would be “ 5.9144 per cent.


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