The    Central Bank of Nigeria has announced plans to issue N140.61bn($894.86m) in treasury bills ranging from three-month to one-year maturities at its regular monthly debt auction this week.

The bank said it would auction N34.88bn in 91-day paper, N45bn in 182-day bills and N60.73bn in 364-day bills on Thursday.

The CBN issues treasury bills regularly to reduce money supply, curb inflation and help lenders manage their liquidity.

Reuters reported that yields were lower across the board compared with the last auction, while dealers anticipate strong demand at this one on the back of continued interest from offshore and local institutional investors.

The Debt Management Office had on Thursday announced plans to auction N90bn ($571.68m)in sovereign bonds ranging between three and 10 years at its regular auction on April 25,

The debt office said it would sell N20bn in three -year paper with term-to-maturity of one year and 11 months and N35bn each in five-year and 10-year paper, which were due to mature in 2017 and 2022 respectively.

Two of the instruments are reopening of previous issues, while the five-year bond is a new issue. The result of the  auction is expected to be released the following day.

“The DMO reserves the right to alter the amount allotted in response to market conditions,” it said in a public notice.

Nigeria, Africa’s second-biggest economy after South Africa, issues sovereign bonds monthly to support the local bond market, creates a benchmark for corporate issuance and funds its budget deficit.

The debt office had on Wednesday announced plans to raise between N210bn and N290bn in sovereign bonds ranging between three and 10 years in the second quarter of the year.

Source: Punch/Okechukwu Nnodim