The Central Bank of Nigeria, CBN on Wednesday raised 176 billion-naira worth of treasury bills at an auction.

The CBN offered 6 billion naira of three-month paper, 30 billion naira of six-month bills and 140 billion naira of one-year notes.

The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for banks to manage the volume of cash in circulation.

However, the sheer considerable number of investors interested in the auction may have forced the yield down as total demand for the notes stood at 229.9 billion naira.

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Investors were demanding as high as 20% yields for the one-year paper, which sold for 13.7%. It sold the one-year paper at 14.3% in January.

The apex bank auctioned the three-month bill at 11.95% from 12.55% last month and the six-month note at 13.65% from 13.92%.

The government has been working to lower its borrowing costs, particularly as inflation fell for the 12th time in a row on Wednesday.

The government also plans to refinance $2.5 billion worth of treasury bills from the proceeds of a planned eurobond sale this first quarter.

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