CBN Pumps N65.5 Billion into Economy

The Central Bank of Nigeria (CBN) has injected N65.5 billion into the economy through the sale of Federal Government bonds.
The Federal Government securities sold were in 3-year, 5-year and 10-year bonds and were sold at the government securities trading floor of the CBN.
The bid rates for the entire bonds varied between 5.40 per cent and 12.25 per cent, while the issue rates stood between 6.75 per cent and 8.50 per cent.
The apex bank said in a statement that investors did not get all that they bidded for. It explained that the bonds were oversubscribed, hence the apex bank had to sell just what it had on offer.
Although all the transactions made on the bonds were done at the Primary Market Auction (PMA), the CBN did not make any repayment on the three bonds.
The apex bank said it, therefore, made the net withdrawal remain at N65.5 billion. The range of bid rates on the 3-year bond which matures on May 22. 2012 were between 5.10 per cent and 9.00 per cent, while the issue rate stood at 6.75 per cent.
The 10-year bond, which will mature on Oct. 23, 2019 has bid rates standing between 5.75 per cent and 10.00 per cent and issue rates standing at 8.32 per cent. The 10-year bond expected to mature Nov. 29, 2029 has bid rate between 5.40 per cent and 12.25 per cent, with the issue rate standing at 8.50 per cent.
Apart from the sale of the bonds, the apex bank said it made a repayment of N16.68 billion to investors in promisory notes at the Primary Market Auction (PMA).