CBN to Offer N162bn Worth of Treasury Bills for Subscription
The Central Bank of Nigeria (CBN) is scheduled to hold a primary market auction (PMA) on Wednesday, where the authority is expected to offer N162.018 billion worth of treasury bills across standard tenors.
To keep excess liquidity in the financial system in check, the Apex Bank plans the auction for Wednesday to absorb N27 billion worth of Nigerian Treasury bills that will mature in the week.
Analysts have projected that discount rates would reduce. Fixed income market analysts anchored reduced rate expectations on robust demand for the naira assets, citing strong liquidity levels in the financial system.
Real return on naira assets will adjust as investors and the market anticipate that Nigeria’s rebased consumer price index will ensure disinflation persists in the first half of 2025.
“At the auction, we expect rates to slightly taper”, Cordros Capital Limited said in a market update. The market has seen spot rates fluctuating as investors maintain an appetite for long duration.
In the secondary market, yields on Nigerian Treasury bills have eased on rising demand for the naira assets. Investors continue to take positions while waiting for fresh catalysts to drive yield repricing.
Strong liquidity levels continue to hamper rate upswings, analysts said, adding that positive return on investment has boosted increased demand across the board. The Nigerian Treasury Bills market traded on a subdued note throughout the week, with overall activity levels remaining light.
The week opened with limited interest across both OMO and NTB maturities, as only a few trades were recorded on select OMO papers such as the 9-Oct-2025, 23-Apr-2026, and 20-Jan-2026 bills.
Midweek, a bullish tone surfaced, particularly on mid-to-long dated maturities like the 4-Jun and 20-Jan OMO bills, with trades executed around 18.80%, although volumes remained thin
Investors are expected to shift attention to the main auction, where the CBN will offer ₦162.018 billion across 91, 182, and 364-day tenors, with only ₦27.191 billion maturing. #CBN to Offer N162bn Worth of Treasury Bills for Subscription
