Nigeria’s central bank Wednesday said its fortnightly treasury bills auction would resume October 4, 2017 with N130.37 billion on offer.
The CBN indicated that it plans to sell N28.69 billion in three-month paper, N33.49 billion in six-month bill and N68.18 billion in one-year note, results of which would be announced same day.
In the previous auction conducted earlier this month, the treasury bills were oversubscribed by almost 400 percent as actual subscription stood at N559 billion while the CBN could only allot bills worth N215.88 billion at the auction, with the one-year paper accounting for most of the debt on issue.
Specifically, the monetary authority was able to raise ₦22.78 billion from the three-month tenored bills at 13.15 percent, ₦24.74 billion from the six-month bills at 16.8 percent and ₦168.36 billion from the one-year bills at 17 percent. Investors bided as high as 18.9 percent for the one-year debt and as low as 13.15 percent for the three months note.
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The central bank issues treasury bills twice a month to help the federal government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.