CBN to auction N121.9bn treasury bills. Here’s how you can bid for it

The Central Bank of Nigeria will, on Thursday, auction Treasury bills worth N121.9 billion in the second Primary Market Auction (PMA) of the month of October 2019.

The treasury bills to be auctioned comprise of N5.8 billion with 91-day maturity, N3.5 billion with 182-day maturity, and N112.5 billion with 364-day maturity.

The previous treasury bills auction was oversubscribed by 152.4%, amounting to N338.2 billion instead of the N133.97 billion offered by the CBN. N10 billion with 91-day maturity were auctioned at the rate of 11% and maturing by January 1, 2020.

N17.6 billion with 182-day maturity were auctioned at the rate of 11.6%, maturing on April 2, 2020. N106.4 billion with 364-day maturity were auctioned at the rate of 13.2% and will mature by October 1, 2020.

To subscribe for the October second auction, you need to visit your bank and ask them for form for the treasury bills PMA. To participate in the PMA bid the minimum amount you can buy is N50 million. You will be required to provide a stop rate – which is the rate you are bidding at.

Read also: CBN says it detected counterfeit worth N98.82m in 2018, spends N64bn printing notes

If your stop rate is above the average margin, your bid will be rejected but if it is below the margin it will be accepted.

If you were rejected, you can still purchase treasury bill on the secondary over-the-counter (OTC) market.

If you don’t have N50 million to participate in the primary auction you can still participate in your bank’s pooling system, where funds are pooled to bid treasury. The minimum for the pooling system can be as high as N1 million.

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