CBN Sets for Nigerian Treasury Bills Primary Market Auction
The Central Bank of Nigeria (CBN) will offer Treasury bills for subscription at its midweek primary market as scheduled. The offer will be split across standard tenors by the Debt Management Office, which will handle the auction on behalf of the Apex Bank.
Analysts are anticipating that spot rates will taper following the recent inflation rate slowdown and widening real return on investment. Inflation fell to 21.88% year-on-year in July, while the monetary policy committee kept the benchmark interest rate at 27.50%.
The monetary policy rate was jerked up as part of efforts to combat hydra-headed headline inflation, which has remained significantly outside the CBN target range.
With disinflation and strong investor appetite, the authority has been repricing the spot rates on Nigerian Treasury bills across standard tenors, a development that has been sufficiently supported by improved macros in the country.
In the secondary market, trading activities have been concentrated at the short- and medium-term segments. The pre-auction session was, however, quiet. Traders rpeorted that mild buying interest emerged on short-dated NTBs like the 20-November, while offers were seen on the 5-Feb and 19-Feb tenors.
At the close of the trading session, the average mid-rate held steady as market players shifted attention to the midweek Treasury bills auction, where ₦230 billion will be offered across the usual tenors, AIICO Capital Limited said . # CBN Sets for Nigerian Treasury Bills Primary Market Auction Naira Mixed as Gross External Reserves Reach $40.962bn
