The Nigerian Treasury Bills auctioned for the month of May was oversubscribed by N132bn.
The Debt Management Office disclosed this on its website on Wednesday last week, adding that a total of N33bn was offered while it recorded a total subscription of N165.56bn.
The treasury bills were auctioned across 91-day, 182-day and 364-day tenors.
A total of N4.38bn was offered on the 91-day; N12.92bn for the 182-day tenor, and N16.5bn was offered on the 364-day tenor.
The 91-day and 182-day tenors got total subscriptions of N22.33bn and N41.19bn respectively, while the 364-day tenor received N102.03bn subscription.
Total allotments of N19.78bn, N40.09bn and N82.88bn 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.
