CBN Sets for N1.15trn Midweek Treasury Bills Auction
The Central Bank of Nigeria (CBN) is set to conduct its second Treasury Bills auction for the month on Wednesday as investors continue to show interest in the naira curve.
The total offer size is ₦1.15 trillion, split across three maturities: 91, 182, and 364 tenors.
The authority is going to put N150 billion worth of Treasury bills on offer for investor subscription. The last auction on the short tenor underperformed due to investors’ appetite for long duration.
At the belly of the curve, demand for 181-day treasury bills has been unimpressive too, though the CBN will put N150 billion out for investors to chase with their money.
Nigerian Treasury bills with 364-day maturity has remained investors’ toast, and the market anticipated subscription level to remain strong on Wednesday despite a slash in spot rate at the previous action.
MarketForces Africa reported that the CBN axed the spot rate on a 1-year treasury bill as investors, including banks and other asset managers, placed N4.4 trillion against N800 billion offer at the previous action.
The excessive demand allowed a significant cut in the discount rate to 16.987% from 18.36% previously priced for the naira asset. The CBN kept rates on 91 days bill at 15.84% and 182-day bills was priced at 16.65%.
The market anticipates spot rates repricing to continue amidst disinflation condition, and naira stability. Nigeria continues to keep interest rates attractive as part of efforts to funds large budget deficit in 2026.
In its commentary note, AAG Capital Limited said following the latest inflation print of 15.10% and market response evident in secondary market yield repricing, it anticipates lower prints at tomorrow’s auction and another potential record-bid volume.
Analysts expressed that focus will be on the 1Y bill, where investors seek to lock in a fair yield at current levels on the longest short-tenored paper available ahead of an imminent rate cut.
Naira curve is active and loved, the investment firm said. CBN Projected to Float OMO Bills Auction as Liquidity Spikes
