Nigeria to Raise N1.13tr Through TBills Sales in Q2
The Central Bank of Nigeria said it plans to raise N1.129 trillion through the auction of Treasury bills in the second quarter of the year as N1.086 trillion worth of bills matures during the same period.
In its Treasury Bill issuance programme running from March 16 to June, the apex bank said it will raise the bill in 91, 182 and 364 day bills.
On March 16, the apex bank said there will be a rollover of maturing 91 and 182 day bills of N39.006 billion and N48.453 billion respectively. While there will be a maturing of 364 day bill worth N83.049 billion, the CBN will be issuing TBills worth more than what will mature.
It plans to mop up N126.304 billion through the auction of the 364 day bill. There will also be a rollover of maturing 91, 182 and 364 day TBills of N28.122 billion, N23.683billion and N83.168 billion respectively.
In April, it plans to mop up N402.409 billion through TBills auction, the same appoint that will be maturing in that period. It also plans a rollover of maturing bills of N261.552 billion in May and a rollover of maturing 91, 182 and 364 day TBills of N117.148 billion in June this year.
Last week, the N373 billion worth of bills sold in both market eliminated the impact of the inflow of N310 billion through matured TBills combined with outflow through funding for purchase of CBN’s intervention dollar sales aggravated scarcity of funds in the market during the week.
The amount of cash in the market dropped from N74 billion at the beginning of the week to N2 billion at the close of business on Friday. This prompted short term cost of funds to rise by 50 per cent during the week, with interest rate on Overnight lending and Secured lending (Open Buy Back, OBB) rising from 10 per cent the previous week to 15 per cent last week
