Nigeria plans to sell 117.17 billion naira worth of treasury bills at an auction on November 29, traders said on Tuesday.
The central bank plans to offer 26.14 billion naira in three-month paper, 11 billion naira in six-month bill and 80.03 billion naira in one-year note.
Results of the auction will be announced next day.
The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.
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According to the Diamond Bank website, Treasury Bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short term funding for the government.
They are by nature, the most liquid money market securities and are backed by the guarantee of the Federal Government.
They are usually issued for tenors of 91 days, 182 days and 364 days at the primary market auction held fortnightly by the Central Bank of Nigeria.
The interest rate (stop rate) at the auction is not fixed but fluctuates based on demand and amount offered by the apex bank.
However, there are other tenors available in the secondary market based on prevailing rates.
More information on Nigeria Treasury Bills can be found on the CBN website.
