CBN to Float N290 Billion Treasury Bills for Subscription
The Central Bank of Nigeria (CBN) is scheduled to float N290 billion worth of Nigerian Treasury bills for investors subscription at the primary market auction (PMA) on Wednesday.
This revealed that the offer size is below N326.88 billion in Treasury bills that will mature across standard maturities in the week. The outcome of the monetary policy committee meeting is expected to reflect on spot rates pricing at the main auction to be held by the Debt Management Office (DMO) on behalf of the CBN.
“In our view, the fixed income market has largely priced in a policy rate hold. However, a more dovish stance could prompt a downward adjustment in yields across the curve,” AAG Capital Limited said in a commentary note.
Last week, the National Bureau of Statistics (NBS) released the June 2025 inflation report, with the headline rate easing to 22.22% year on year. Disinflation is expected to impact activities in the fixed income market and spot rates on Nigerian Treasury bills across 91-day, 182-day, and 364-day maturities.
Treasury yields have continued on a downward trajectory, albeit marginally, as significant repricing had already occurred in the previous week. The market experienced sustained demand at the long end of the yield curve last week, as investors moved to lock in prevailing rates amid ongoing repricing dynamics.
The majority of the buying activity was seen at the short (-11 bps) end of the curve, where investors accumulated units of the MAR-27 (-30 bps), FEB-28 (-15 bps), and APR-29 (-14 bps) papers. Consequently, the average yield across the curve declined by 8 bps to close at 16.53%. #CBN to Float N290 Billion Treasury Bills for Subscription Barbican Capital Limited Sells 15% Shareholding in FirstHoldco
