New Telegraph

CBN to issue N570.41bn treasury bills in Q2’21

The Central Bank of Nigeria (CBN) will issue a total of N570.41 billion Treasury Bills (T-Bills) in the second quarter of 2021, the apex bank announced yesterday. The figure is N280 billion less than the N850.41 billion treasury bills that the regulator issued in Q1’21.

In its Treasury Bills issue programme for the second quarter of 2021 posted on its website yesterday, the CBN said it would raise a total of N398.74 billion in the one-year tenor treasury bills, N79.65 billion worth of the six-month debt instruments and N92.05 billion of the three-month debt in Q2’21.

The CBN sells treasury bills twice monthly as part of measures to raise cashback on behalf of the Debt Management Office (DMO) for government budget spending ahead of revenue accretion. The apex bank also issues the paper to help lenders manage their liquidity.

In a recent report, analysts at Coronation Asset Management Limited predicted that Treasury bill (T-bill) rates, which have been rising in recent weeks, would maintain upward trend and could climb above 10.0 per cent by the middle of the year, As the analysts put it, “recent auctions in the Nigerian Treasury Bill (T-bill) market have reached yields of 5.5 per cent (for 1-year paper), trending upwards and trading much higher than yields in the secondary market. We think that T-bill yields can reach 10.0 per cent per annum, if not higher, by mid-year.”

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