CBN to Offer N700 bln in Nigerian Treasury Bills for Subscription
The Central Bank of Nigeria (CBN) is scheduled to open NGN700 billion worth of Treasury bills for investors’ subscription this week, according to a primary market auction circular.
The monetary authority planned to raise the amount from 91-, 182-, and 364-day Treasury bills at the midweek auction. This is expected to keep excess liquidity in the financial system in check.
The market anticipates another round of strong investor participation and healthy subscription levels, supported by robust liquidity in the financial system.
Fixed income market analysts said they also expect continued demand for high-yielding sovereign instruments to keep demand for Treasury bills strong at the auction.
The bulk of the allotment remained concentrated in the 364-day bill, reinforcing the CBN’s preference for extending the maturity profile of its domestic debt obligations.
Broadstreet analysts said they anticipate the Treasury bills clearing rates to remain broadly stable, with a downward bias, particularly on the 364-day tenor.
The spot rates were held unchanged for 91- and 182-day Nigerian Treasury bills at the main auction conducted about two weeks ago. However, the authority reduced the discount rate on 364-day bills, which was significantly oversubscribed.
In the secondary fixed income market, analysts reported that yields expanded at the mid (+2bps) and long (+2bps) segments of the curve, leading the average yield to inch up by 2bps to 18.12%.
Overnight Rate Dips as Financial System Liquidity Rises to N5.33trn
