The Central Bank of Nigeria (CBN) yesterday said it will issue N2.2 billion Treasury Bills (T-Bills) in the fourth quarter of this year.
The issuance followed N2.2 billion maturing T-Bills, within the same period.
T-Bills are short-term debt securities issued by the government to make up for budget deficit and fund projects. In Nigeria, T-Bills are issued by the Central Bank of Nigeria (CBN) on behalf of the federal government.
In a schedule posted on its website, the apex bank said the issuances will come in three tenors of 91 days, 180 days and 360 days.
The report showed that the CBN will offer (N157.8 million) worth of instruments across three tenors – 91-day, 182-day (N109.6 million), and 364-day (N1.94 billion) bringing the total value at maturity to N2.2 billion.
Analysts said demand at the auctions are expected to be strong with a bid-to-cover ratio expected at 3.7 times. The CBN said the offer amount may change, even as one unit of NTB is priced at N1,000.
Report from Afrinvest West Africa, showed that last week the Nigerian Treasury bills market exhibited strong bullish activity, driven largely by the impact of unsuccessful bids from the Primary Market Auction (“PMA”) held on (Wednesday 21-Aug-24) which exerted downward pressure on yields.
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As a result, average yield dipped by 262 basis points week-on-week (w-o-w) to settle at 22.32 per cent from 24.94 per cent recorded the previous week.
“Demand was witnessed at all ends of the curve as the average yields of the short, mid and long ends fell 341bps, 254bps and 172bps w-o-w sequentially. This was evident in the 9-Jan-25 and 12-Dec-24 maturities which contracted by 574bps and 439bps w-o-w respectively,” the report said.
At the PMA held on Wednesday 21-Aug-24, the Apex bank offered a total of N409.97 billion across the 91-, 182- and 364-Day instruments.
 yesterday said it will issue N2.2 billion Treasury Bills (T-Bills) in the fourth quarter of this year.){kind=link}