CBN Targets N750bn in Upcoming Treasury Bills Auction
The Central Bank of Nigeria (CBN) is scheduled to raise N750 billion from Treasury bills subscription at the primary market auction on Wednesday.
The offer size includes 91- and 182-day Treasury bills worth N100 billion each, and the authority plans to raise N550 billion from 1-year paper.
The market anticipates subscription to remain strong, especially with one-year Treasury bills, which have consistently attracted investors seeking long-duration investment options.
The CBN’s continued liquidity management stance should keep stop rates broadly stable with a slight upward bias, especially on the 1-year paper, AAG Capital Limited said in a note.
The CBN offered N700 billion in Nigerian Treasury Bills across the 91-day, 182-day, and 364-day tenors at the previous auction.
Demand came in at N2.03 trillion, higher than the N1.86 trillion recorded at the prior auction. However, the CBN allotted N1.06 trillion, lower than the N1.49 trillion at the prior auction.
Demand remained skewed toward the long end of the curve, with the 364-day paper attracting N1.86trn of total subscriptions. Stop rates cleared at 16.30%, 16.50%, and 17.70% p.a. across the 91-, 182-, and 364-day bills.
Notably, the 364-day stop rate saw the sharpest move, widening by 36 bps relative to the prior auction, reflecting a sustained aggressive borrowing stance for the quarter. Treasury Bills Yield Rises to 19.5% Ahead of Q2 Supply
