CBN to Sell N40.91 Billion Treasury Bills, DMO Issues N30 Billion 5-Year Bonds
Smartproinvesting.com, April 22, 2008
The Central Bank of Nigeria is set to sell treasury bills worth N40.91 billion in all, come this Thursday. The bills are in two tranches of N5.11 billion 91-day and N35.79 billion 182-day bills, according to the CBN's circular on the proposed auction, released today.
Treasury bill is a marketable, short-term government debt security of 90days to 1 year maturity, issued by the Central Bank. Treasury bills are re-discountable, meaning that they are re-marketable at a discount from face value.
The CBN conducts weekly treasury bill auctions to sell Nigerian Treasury Bills as part of its monetary policy management process. Only Money Market Dealers, mainly banks and discount houses, participate in the Dutch System type auction, buying on their own account or on behalf of their customers. Individuals and other investors who are not approved dealers can only buy treasury bills through the money market dealers.
Treasury bills may particularly appeal to investors at this point on account of the persistent bearish mood the stock market has experienced for several weeks now. Investors who choose to move into near-cash assets to wait our the stock market decline may find treasury bills attractive.
DMO Issues 5-year Bonds
In a related development, the Debt Management Office will Wednesday, 23rd April 2008, issue 5-year Federal Government bonds worth N30 billion. The 9.45% bond matures January 25, 2013 and is redeemable by a bullet repayment.
Investors can only buy bonds through the Primary Dealer Market Makers, again mainly banks and discount houses. The DMO offer circular provides the additional information that an investor might be interesred in.
NSE Closing Figures
More Business Reports...
Visit Our Business Events Board»
Post Your Business Event on Our Board»
|
