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Treasury Bills are government securities sold by the Central Bank of Nigeria (CBN) to the general public in return for interest payments.

Treasury Bills have a tenor of 91 days, 182 days and 364 days respectively. They are used to fund government expenditure and also used as a monetary policy tool by the CBN.

The CBN auctions treasury bills to the public every fortnight. The apex bank held its Primary Market Auction (PMA) today, 18 July 2018. A PMA means the CBN sells the bills directly, and is the opposite of a secondary sale.

In a secondary sale, investors that bought at the primary auction, sell off their holdings.

Treasury bills worth N178.44 billion was offered, while a total of N174.39 billion was subscribed for the 91 days, 182 days and 364 days, which represents 97.75% subscription rate.

A total of N107.05 billion for 91 days, 182 days and 364 days was alloted. Here is a breakdown of the allotment.

  • N5.8 billion worth of 91-day bills were alloted of the N6.6 billion subscribed. Stop rate was 10%
  • N26.6 billion worth of 182-day treasury bills were alloted of the N26.8 billion subscribed. Stop rate was 10.5%.
  • N74.5 billion worth of 365-day treasury bills were alloted. Stop rate was 11.49%.
Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com



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