Dipo Olowookere
By Dipo Olowookere
On Wednesday, November 29, 2017, the Central Bank of Nigeria (CBN) will carry out another primary auction of Nigerian treasury bills.
A total of treasury bills worth N117.18 billion would be offered for sale by the central bank.
Due to activities at the T-bills market last week, observers expect stop rates to decline in line with declining inflationary trend and improving economic outlook
According to the calendar released by the CBN for the exercise, it would put for sale 91-day bills worth N26.14 billion, while the 182-day instrument worth N11.01 billion would be auctioned, and the 364-day bill worth N80.03 billion would be put up for sale at the Wednesday exercise by the apex bank.
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.
To buy treasury bills from the primary market, investors have to approach their banks requesting for a form.
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.
