Imported User:
The Federal Government plans to auction N254.61 billion ($1.57 billion) in treasury bills with maturities ranging from three months to one year at its bi-monthly debt auction on July 12, the Central Bank of Nigeria (CBN) said in a public notice yesterday.
The bank said it would sell N30 billion in 91-day paper, N159.21 billion in 182-day, and N65.40 billion in 364-day bills in a Dutch auction.
Government, according to Reuters, sell short-dated debt instruments bi-monthly to control money supply, curb inflation and help lenders manage their liquidity.
At the previous auction held a fortnight ago, a total of N21.84 billion worth of securities was offered to competitive bidders at the 91-day Treasury Bill (TB) auction, while a total of N10.24 billion was sold to non-competitive bidders, bringing total offer and sale to N32.07 billion.
The bill was 145.32 per cent subscribed as N31.73 billion worth of bid was received from competitive bid. The bill was issued at a discount rate of 14.09 per cent. A total of N21.84 billion worth of matured bills was repaid into the system, leading to a net outflow of N10.24 billion from this segment of the market.
At the 182-day TB auction, a total of N52.73 billion worth of securities was offered to competitive bidders, while N15.32 billion was sold to non-competitive bidders, bringing total offer and sale to N68.05 billion.
The bill was 158.38 per cent subscribed as N83.52 billion worth of bid was received from competitive bidders. The bill was issued at a discount rate of 15.31 percent. A total of N42.73 billion worth of matured bills was repaid into the system, leading to a net outflow of N25.32 billion from this segment of the market.
