Central Bank of Nigeria, CBN, on Wednesday, January 17,offered treasury bills worth N229.85 billion to traders through the primary market auction.
It is the second PMA for the year 2018 and the bills would be offered in 91 days, 182 days and 364 days tenors.
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.
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.
In Wednesday’s sales, the apex bank offered to traders N10.25 billion worth of the 91-day bill (maturing April 19), N26.60 billion worth of 182-day bill (maturing July 19) and N193 billion worth of 364-day bill (maturing January 17, 2019).
Meanwhile, on Tuesday, the T-bills market was slightly bearish as a result of expectation for today’s exercise by the CBN.
A breakdown of the sale of treasury bills through the open market operations (OMO) on Tuesday showed that the apex bank raised N2 billion from N50 billion offered for the 93-day bill with stop rate clearing at 12.60 percent.
In addition, the central bank sold N27.56 billion worth of the 163-day bill from the N100 billion offered to traders, Business Post reports.