CBN to Open N1.05trn Nigerian Treasury Bills for Subscriptions
The Central Bank of Nigeria (CBN) is set to conduct its third Treasury Bills auction for the month on Wednesday, amidst liquidity surplus in the financial system.
The Apex Bank, through the Debt Management Office (DMO), will float a total of N1.05 trillion in Nigerian Treasury bills for subscription across three maturities.
At the midweek primary market auction, Nigerian Treasury bills with a 91-day maturity worth N100 billion will be available for investors.
Additionally, the CBN will offer N150 billion in 182-day bills for subscription. One-year Treasury bills totalling N800 billion will also be opened for subscription spot rate repricing.
The market anticipates strong demand for the midweek auction amid high liquidity in the financial system. At the previous auction, the CBN allotted N934 billion in treasury bills across standard tenors, out of total subscriptions of N2.78 trillion.
With ongoing disinflation, analysts expect the spot rate to decrease as the authorities aim to reduce the Central Bank’s funding costs. Real return has widened to 11.44% as the 26.50% interest rate benchmark continues to chase 15.06% headline inflation, which analysts see as a catalyst for fixed-income security repricing.
In the last auction, the monetary authority lowered the spot rate on 364-day bills to 16.72%, down from 16.73%. The discount rates for the 91-day and 182-day Treasury bills remained the same at 15.95% and 16.65%, respectively. Inflation: LCCI Cautions Against Complacency
