CBN to Open N650bn Treasury Bills for Subscription Next Week
The Central Bank of Nigeria (CBN) will conduct a primary market auction next week where N650 billion worth of Treasury bills paper will be offered for subscription.
Next week, a total of ₦662.76 billion in Treasury bills and ₦1.44 trillion in OMO bill maturities are expected to mature. The inflows are anticipated to boost the liquidity level in the financial system.
As a result, fixed-income market analysts expect auction demand to remain strong, particularly at the longer end of the curve.
The fixed income market closed the month on a quiet note, with activity remaining moderate across the board. At the bond market, demand at the short end (-4 bps), particularly the 29s and 30s, drove a mild decline in average yields to 15.90%.
At the Treasury bills market, trades were cautious, with mixed sentiments. Bullish sentiments at the mid-segment of the curve were offset by bearish sentiment on longer-dated papers, with average yields inching up by 3 bps to settle at 17.46%.
In October, the CBN offered N640 billion worth of Treasury bills, and the subscription level reached N1.8 trillion. Total allotment of N1 trillion was made across the two auctions in the month. This was 56.5% of the total subscription level reported.
The demand level was modest at 2.8x, although interest was skewed in favour of long-dated offers. The auction cleared at marginally lower average stop rates of 15.15%, 15.38%, and 15.96% for the respective papers from 15.16%, 15.40%, and 16.90% the previous month. Zenith Bank Price Target Sets at N81 after Q3 Earnings
