The Nigerian treasury bills auctioned for the month of May was oversubscribed by N132B.
The Debt Management Office disclosed this on its website on Wednesday (May 13th), adding that a total of N33B was offered while it recorded a total subscription of N165.56B.
The treasury bills were auctioned across 91-day, 182-day and 364-day tenors.
A total of N4.38B was offered on the 91-day; N12.92B for the 182-day tenor, and N16.5B was offered on the 364-day tenor.
The 91-day and 182-day tenors got total subscriptions of N22.33B and N41.19B respectively, while the 364-day tenor received N102.03B subscription.
Total allotments of N19.78B, N40.09B and N82.88B were made on the 91-day, 182-day and 384-day tenors respectively.
The bid rates in percentage were 1.3900-6.6398, 1.9400-7.4800, and 2.8000-12.8000, while the stop rates in percentage were given as 2.5000, 2.8500 and 3.8400 for the 91-day, 182-day and 364-day tenors respectively.
According to the DMO, allotment date would be May 14, 2020.
Treasury bills are short-term sovereign debt securities maturing in one year or less.
They are sold at a discount and redeemed at par.
The bills are by nature the most liquid money market securities and are backed by the guarantee of the federal government of a nation.
The federal government of Nigeria, through the Central Bank of Nigeria, issues the treasury bills to provide short-term funding for government budget deficit.
The treasury bills are usually issued through a competitive bidding process, quoted and traded on FMDQ’s platform.
Source: Business a.m.