The Debt Management Office has said that neither it nor the Central Bank of Nigeria predetermines the interest rates at which the government sells the Nigerian Treasury Bills at the monthly auction market. DMO said different bidders attend the market with different rates, taking a cue from the rates obtainable at the secondary market. The NTBs are the Federal Government’s short-term debt instruments issued regularly by the DMO through the CBN, which serves as the debt agency’s agent. The statement read in part, “Investors bid at the NTBs auction at their own interest rates. Thus, the rates on the NTBs are not predetermined or determined by the CBN or the DMO. The rates at which the investors bid are entirely at their discretion but will typically depend on prevailing secondary market rates, their portfolio needs and investment preferences. Read More:
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