CBN to issue N507.40bn treasury bills in second quarter

The Central Bank of Nigeria (CBN) will issue a total of N570.40 billion treasury bills in the second quarter of 2021 as the same amount will be maturing between March 2021 and May, this year.

The CBN stated this in the Nigerian Treasury Bills issuance programme calendar released on its website on Thursday.

On a quarterly basis, the amount is 32.92 percent lower than N850.41 billion offered in the first quarter (Q1) 2021, and 11. 23 percent above the N512.8 billion issued in the corresponding quarter of 2020.

The breakdown of the T-bills programme to be issued in the next three months of year 2021, which represents the amount that would mature during the same period, consists of a total of N92.05 billion for 91-day tenor, N79.64 billion for 182-day tenor and N398.70 billion for 364-day tenor.

The CBN issues treasury bills twice in a month to help the Federal Government fund its budget deficit, support banks in managing liquidity in the system and curb inflation.

Nigeria’s inflation rate increased to 17.33 percent in February 2021, from 16.47 percent recorded in the previous month, according to the National Bureau of Statistics (NBS).

The CBN’s economic report for the fourth quarter of 2020, noted that the Federal Government of Nigeria (FGN) short and long-term debt instruments, NTBs and FGN Bonds, were issued at the primary market, where NTBs of 91-, 182- and 364-day tenors, amounting to N655.60 billion, N2.71 trillion and N655.60 billion, were offered, subscribed and allotted respectively, during the fourth quarter of 2020.

At the 91-day auction, total subscription and allotment were N341.42 billion and N66.32 billion, respectively, with bid rates ranging from 0.00 per cent to 2.22 per cent, while the stop rates ranged from 0.02 per cent to 1.00 per cent.

For the 182-day auction, total subscription and allotment were N255.75 billion and N49.18 billion, respectively. The bid rates ranged from 0.01 percent to 2.98 percent, while the stop rates ranged from 0.09 percent to 1.00 percent

At the 364-day tenor, total subscription and allotment were N2.11 trillion and N540.10 billion, respectively, with bid rates from 0.29 percent to 25.00 percent, while stop rates were from 0.15 to 3.20 percent. Altogether, the stop rates ranged from 0.02 percent to 3.20 percent.

NTBs of 91-day, 182-day and 364-day tenors amounting to N1,003.05 billion, N1,794.78 billion and N1.00 trillion, respectively, were offered, subscribed and allotted, respectively, at the auctions held in the fourth quarter of 2020 on behalf of the Debt Management Office (DMO).

At the 91-day auction, total subscription and allotment were N221.46 billion and N115.25 billion, respectively, with bid rates ranging from 1.00 per cent to 9.00 per cent, while the stop rates ranged from 1.09 to 1.79 per cent. For the 182-day auction, total subscription and allotment were N406.54 billion and N189.43 billion, respectively.

The bid rates ranged from 0.01 to 4.21 percent, while the stop rates ranged from 1.39 percent to 1.91 per cent. At the 364-day auction, total subscription and allotment were N1.16 trillion and N698.37 billion, with bid rates from 2.99 percent to 12.80 percent, while stop rates were from 3.05 percent to 3.39 percent. Altogether, the stop rates ranged from 1.09 percent to 3.39 percent.