CBN to Auction N253b Treasury Bills Tomorrow

By Modupe Gbadeyanka

On Wednesday, January 31, 2018, the Central Bank of Nigeria (CBN) will carry out its second Primary Market Auction (PMA) of treasury bills in 2018.

During the exercise, which holds tomorrow, the apex bank will offer N252.9 billion worth T-Bills to investors.

A breakdown of the exercise showed that the CBN will offer 91-day bill worth N6.1 billion, 182-day bill valued at N69.6 billion, and 364-day bill worth N177.2 billion.

Business Post expects the rates to decline further like the previous exercises.

Treasury bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short term funding for the government. They are sold at a discount and redeemed at par.

Twice a month, the CBN issues treasury bills to help the government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.

To buy treasury bills from the primary market, investors have to approach their banks requesting for a form.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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