The Central Bank of Nigeria, CBN, is set to auction N216.09 billion treasury bills on Thursday. According to the CBN’s data on treasury bills, the bank will be auctioning N16.59 billion for 91-day tenor. Also, the CBN will auction N51.34 billion for the 182-day tenor and N148.15 billion for 364-day tenor.
Treasury bills are government securities. They are usually issued by the Central bank of Nigeria to achieve short term capital needs.
It will be recalled that at the last auction, one treasury bill yielded 28.36%, the highest this year. This yield was spurred by the spike in interest rate which had been raised to 26.75% by the CBN. It represented a 0.86% increase from 26.69% at the last auction.
It was also higher than the 26.0% yields of March 2024. The CBN had announced plans to issue N1.56 trillion in treasury bills during the third quarter of 2024. This will match the amount set to mature between June and August this year.
The stop rate on the risk-free instrument is far lower than the July inflation rate of 34.19% as cost of living continue to skyrocket in Nigeria.
The amount to be issued this time is 4.87% lower than the N1.56 trillion issued during the second quarter of the year.
