CBN to Open N650bn Nigerian Treasury Bills for Subscriptions
The Central Bank of Nigeria (CBN) will open Treasury bills worth N650 billion for subscription at the next week’s primary market auction. The market anticipates reduction in the short-term borrowing rates following 50 basis points downward adjustment by monetary policy committee in Sept.
MarketForces Africa reported that the Apex Bank opened its fourth quarter auction calendar with N570 billion across standard maturities, including 91-day, 182-day and 364-day to expiration short term borrowing instruments. Spot rates were reduced across mid and long tenors.
At the main auction scheduled for Wednesday, the CBN will offer 91-day Treasury bills worth N100 billion for subscription. Also, another N100 billion for Treasury bill with 182 days to maturity will be floated for investors subscriptions.
Rates are anticipated to temper to reflect current market condition, with inflation boosting real interest rate to 8.98%. Amidst expectation of sustained appetite for duration, the CBN plans to open N450 billion worth of Nigerian Treasury bills with one year maturity for subscription.
Last week, the CBN offered ₦600 billion across the 193-day and 249-day OMO bills. The offer attracted total subscriptions of ₦2.12 trillion, which were fully allotted.
The stop rates closed at 19.40% for 193 days OMO papers and 19.89% for 249-day – with 23% effective yield. In the secondary market, bullish sentiment dominated the Treasury Bills space, with strong buying interest across short, mid, and long-dated maturities driving average yields 6 bps lower to 17.39% week-on-week.
However, the OMO market traded mixed, with mild sell-offs at the mid-to-long end—particularly on the 9-Dec and 17-Feb maturities—pushing average OMO yields 105 bps higher to 21.62%. # CBN to Open N650bn Nigerian Treasury Bills for Subscriptions
