N330b Bills Mature This Week as CBN Auctions N34b T-Bills Wednesday

By Modupe Gbadeyanka

Treasury bills worth N33.8 billion would be offered to investors via the primary market auction (PMA) this Wednesday.

The government instrument would be auctioned to market traders that day by the Central Bank of Nigeria (CBN).

A breakdown of the anticipated exercise showed that the apex bank will offer N3.4 billion worth of the 91-day bill, N16.9 billion of the 182-day instrument, and N13.5 billion of the 364-day bill.

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.

Like in the previous sales, the treasury bills rates have declined lately and this Wednesday’s exercise is not expected to be different.

Meanwhile, treasury bills worth N330.30 billion would be maturing this week and this is expected to bring ease into the financial system liquidity with resultant moderation in interbank rates if CBN does not aggressively mop up via OMO sales.