CBN to Open Treasury Bills Totalling N450bn for Subscription
The Central Bank of Nigeria (CBN) is scheduled to offer N450 billion in Treasury bills for investors to subscribe to at the primary market auction on Wednesday.
The authority’s auction circular revealed that the second Treasury Bills sale for the month will be split across the standard tenors: 91-day (N50bn), 182-day (N50bn), and 364-day (N350bn) maturities.
Market analysts anticipate subscription to remain strong for the one-year Treasury bills, reflecting investors’ preference for longer-duration naira assets.
Traders said robust liquidity in the financial system and banks’ sustained pursuit of low-risk sources of earnings would boost demand. However, spot rates are projected to continue their downward trend in line with adjustments to the benchmark monetary policy rate.
Also, the expectation of sustained headline inflation would drive spot rates to re-rate in short-term borrowing instruments. The inflation rate was reported lower at 15.39% in August, and the consumer price index is expected to continue its downward trend in Oct.
The market awaits the statistics office to release the inflation figure for October, expected Friday.
In its commentary note, analysts at AAG Capital Limited said ample system liquidity may support speculative funding requirements at the midweek auction.
However, the firm noted that the recent sell-off in the bond market signals potential upward pressure on sovereign borrowing rates, a view affirmed by yesterday’s adjustments to the Q4 2026 issuance plan, which is up to N5.75trn.
“We are of the opinion that 1Y paper has stabilised at these levels and can only reprice higher for renewed interest and price action”, AAG Capital Limited said in its market update.
