The Central Bank of Nigeria (CBN) raised N39.72bn ($130.57m) at a Treasury bill sale, with yields unchanged on the previous auction.
Nigeria’s Central Bank Sells Treasury Bills
Nigeria’s Central Bank sells treasury bills worth N39.72bn ($130.57m) with yields unchanged on the previous auction.
CBN sold N13.17bn of 3-month paper at 14 per cent, the same yield as on December 14, and sold N26.55bn of 6-month paper at an also unchanged 17.5 per cent according to Reuters.
The Bank said the treasury bills auction was lightly subscribed with total demand of N42.68bn on its website.
What are Treasury Bills?
Treasury bills (TBs) are short-term government debt instruments. So when you invest or buy Treasury Bill or T-Bills in Nigeria, you are lending money to the Federal Government on a short-term basis usually less than one year.
They are issued by the Central Bank of Nigeria (CBN), who is the banker to the federal government of Nigeria.
Treasury bills are regularly issued by the CBN to aid lenders in managing their liquidity, control rising inflation and provide the Federal Government with the Naira to fund its budget.
At the mean time, the currencies of Kenya, Uganda and Zambia traded sideways late december, and continue in the same trend till the last Thursday of the year because most investors closed positions ahead of the end of the year while Nigeria’s Naira fell further as dollar shortage persists.