CBN plans N1.2tn T-bills in first quarter

The Central Bank of Nigeria is planning to issue about N1.22tn ($6.61bn) in Treasury bills in the first quarter of 2015. This came just as the funding gap in the 2015 proposed budget has continued to widen over dwindling crude oil prices. In an issuance calendar, the CBN said it would issue N230.88bn worth of three-month Treasury bills, N291.53bn of six-month papers and N700.56bn of one-year notes between December 18, 2014 and March 5, 2015. The CBN issues Treasury bills twice a month to fund the budget and manage liquidity in the banking system. Meanwhile, the CBN last week sold N195.56bn $1.06bn) worth of Treasury bills with maturities ranging between three months and one year at higher yields. The bank sold N33.87bn in 3-month Treasury bills at 11 percent, compared with 9.99 per cent at the Nov. 19 auction. A total of 51.30 billion naira worth of the six month bill was sold at 13.84 per cent, against 10.8 per cent previously. In the one year tenor bill, the CBN sold N110.39bn at 15.99 per cent, compared with 12.48 per cent at the last auction.