LAGOS- The CBN says it has withdrawn N9.34 billion from circulation through the sale of treasury bills.

The bank, according to a report obtained from CBN’s Banking Operations Department, by newsmen in Lagos yesterday said that the money was withdrawn last week through a single issuance of the government securities at the Primary Market Auction (PMA).

The report said that N9.345 billion was raised from 91-day and 182-day durations of treasury bills.

At the PMA window last Thursday, the CBN placed on offer 91-day tenor bills worth N4.34 billion.

Although investors subscribed for 91-day tenor bills worth N4.36 billion but the CBN only sold out the amount it placed on offer.

The apex bank, reports say also repaid a total of N5 billion to investors on Thursday, making the net withdrawal by the bank to stand at a deficit of N655 million.

The bid and the issue rates on the bills varied between 8.7990 per cent and 9.1000 per cent, while the true yield on the investment when it matures on December 11, 2008 would be 9.3107.

Besides, investors did not get all that they bid for on the 182-day tenor bills as the CBN sold N5 billion worth of the bills as against N7.31billion demanded.

The bank made a repayment of N10 billion to investors, making the net withdrawal for the day to stand at a deficit of N5 billion.

The bid rates on the bills was between 9.2990 per cent and 9.5500 per cent, but the issue rates stood between 9.2990 per cent and 9.4299 per cent.

The 182-day tenor bills is expected to have a true yield rate of 9.8938 per cent on the maturity date of March 12, 2009 .

At the OMO wing, last Thursday, the CBN also paid N12 billion on two-way quote securities to investors.

The Monetary Policy Rate (MPR) remained at 10.25 per cent.