CBN Opens N700bn Treasury Bills Auction on S4 Platform
The Central Bank of Nigeria (CBN) is set to open a Treasury bills auction on its S4 platform on Wednesday, offering N700 billion to investors across standard tenors.
Trading activities in the secondary market was quiet on Tuesday as investors’ attention shifted to the primary market auction scheduled for midweek.
The midweek treasury bills auction is expected to be conducted by the CBN through the S4 platform amidst the authority plan to take over fixed income market activities and regulation.
The CBN will put N100 billion worth of Nigerian Treasury bills with a 91-day tenor for subscription. The authority will float N150 billion treasury bills with 182 days to maturity for sales, and an offer for one-year bills totaling N450 billion is expected to be floated for subscription on Wednesday.
The market anticipates rates to temper, reflecting disinflation and a substantial liquidity level in the financial system. Subscription is expected to be strong due to a robust liquidity in the banking system.
On Tuesday, the authority floated an OMO bills auction where N600 billion was offered to banks and foreign portfolio investors—the eligible market participants—across 175 and 182 days to maturity.
The authority more than doubled down on the allotment and raised ₦2.98 trillion across the 175- and 182-day tenors. Overall, spot rates were unchanged across the curve, leaving the average yield steady at 15.71%. Dangote Cement Plunges as Investors Trim Shareholding
