The Central Bank of Nigeria, CBN, Wednesday, said it will sell N513 billion worth of Nigeria Treasury Bills in the second quarter of the year, Q2’20.
The apex bank made this disclosure in its Nigeria Treasury Bills Issuance programme for second quarter 2020 just released on its website.
The CBN noted that, the N513 billion Nigeria Treasury Bills (NTBs) comprise N94.245 billion worth of 91-Days bills, N86.182 billion worth of 182-Days bills and N332.352 billion worth of 364-Days bills.
According to the CBN the NTBs to be issued represent rollover of equal amount of bills that will nature during the period. The CBN sells two types of Treasury bills namely NTB and OMO bills.
The NTB is issued to borrow from the public on behalf of the Federal Government while the OMO (Open Market Operations) bills are issued to mop up excess cash from the system.
Last year, the apex bank banned local investors from OMO auction restricting participation to banks foreign portfolio investors (FPIs).
The move triggered huge excess demand for NTBs resulting to crash in the yields on the instrument, with yield on 364-Days NTB crashing to around five percent last week from around 15 percent December 2019.