CBN to Open N650bn Nigerian Treasury Bills for Subscription
The Central Bank of Nigeria (CBN) is scheduled to conduct a primary market auction (PMA) where the authority will offer N650 billion worth of Nigerian Treasury bills (NTB) to investors for subscription.
The offers are expected to be split across standard maturities: 91-day, 182-day, and 364-day amidst declining spot rates. At the previous auction, the CBN sold about ₦774.13 billion, while total subscriptions settled at ₦2.408 trillion. The breakdown showed investors showed preference for longer duration bills.
This afforded the CBN the opportunity to reduce price spot rates on the competitive bids lower across standard maturities. Auction results revealed that stop rates for the 91-day, 182-day, and 364-day papers fell by 100 basis points (bps), 50 bps, and 189 bps, closing at 17.00%, 18.00%, and 18.43%, respectively.
In February, the DMO raised ₦1.44 trillion via the PMA, marking a 13.62% increase from January’s ₦1.27 trillion. Analysts have projected that the midweek auction will be significantly oversubscribed, citing an expected surge in liquidity levels in the money market this week.
Inflow from FAAC disbursements totaling N1.15 trillion is expected to boost liquidity in the financial system. Additionally, maturities worth N50 billion from Open Market Operation (OMO) bills and N1.27 trillion from Treasury Bills will enter the market, further bolstering liquidity levels, according to Cowry Asset Limited.
#CBN to Open N650bn Nigerian Treasury Bills for Subscription CBN Rejects N1.6trn from Investors, Cuts Treasury Bills Rates
