Dipo Olowookere
By Dipo Olowookere
Treasury Bills worth N109.7 billion would be offered for sale to investors on Thursday, May 2, 2019 (today) at the primary market.
Business Post gathered that the exercise would be conducted by the Central Bank of Nigeria (CBN) on behalf of the Nigerian government, which is borrowing through the sale of the debt instrument.
During the primary market auction (PMA), the apex bank will offer the maturities of the treasury bills as usual; 91-day, 182-day and 364-day bills.
It was further learned that N28.02 billion of the 91-day instrument would be auctioned, N43.52 billion worth of the 182-day tenor would be sold and N38.17 billion worth of the 364-day bill would be auctioned today.
It is not certain if the central bank will further reduce the stop rates of the instruments like it did in the last exercise.
At the last exercise, the 91-day instrument cleared at 10.15 percent, the 182-day bill at 12.50 percent and the 364-day bill at 12.74 percent.
Treasury bills are short-term debt instruments issued by the government via the central bank to borrow funds to finance some projects. They also used as a primary instrument for regulating money supply via open market operations.
