CBN to Auction N216.09 Billion in Treasury Bills on Thursday

The Central Bank of Nigeria (CBN) plans to auction off N216.09 billion worth of treasury bills on Thursday. This action is part of the bank’s routine activities to manage money flow within the country.

The details of the auction are as follows: N16.59 billion will be offered for the 91-day bills, N51.34 billion for the 182-day bills, and N148.15 billion for the 364-day bills. These offerings are designed to meet the needs of different investors.

This upcoming auction comes at a time when the returns on treasury bills are very high. At the last auction, the one-year bill yield reached 28.36 percent, the highest rate this year, influenced by a recent rise in interest rates to 26.75 percent in July 2024.

The increase from the previous rate of 26.96 percent and the rates since March, which were around 26.01 percent, indicates a significant upward trend.

The CBN has also planned to issue N1.56 trillion in treasury bills during the third quarter of 2024 to cover the bills that are due to be paid. This amount is slightly less, by 4.87 percent, than what was issued in the second quarter of 2024.

Treasury bills are short-term government securities that the CBN uses to help manage the country’s financial needs effectively.