CBN to Sell Nigerian Treasury Bills to Investors Midweek
After weak OMO bills auction delivered by the Central Bank of Nigeria (CBN) on Tuesday, the monetary authority is scheduled to open treasury bills for subscription on Wednesday.
The CBN will open N1.15 trillion in Treasury bills for subscription across standard tenors on Wednesday, amid strong liquidity in the financial system.
Analysts anchored today’s auction performance to the size of free funds in the money market and rising appetite for the naira asset after an underwhelming performance at yesterday’s OMO bill auction.
The CBN offered OMO auctions totalling ₦600.00 billion across 7-day, 98-day, and 105-day bills, but allotted ₦235.60 billion for just the 98-day and 105-day bills, with stop rates clearing at 19.35% and 19.40%, respectively.
Demand was robust at ₦711.85 billion across the offered papers, though allotment was weaker than anticipated, suggesting a well-contested primary market auction.
Meanwhile, trading activities in the secondary market for Nigerian Treasury bills closed bullish, with the average benchmark yield declining marginally by 1 bp to 17.23%.
Analysts expect transactions to moderate further as investors’ attention shifts to the treasury bills auction, with projections showing a preference for the 364-day bill, which is expected to account for a large share of subscriptions.
Similarly, proceedings in the OMO secondary market closed on a bullish note, with the average benchmark yield declining 1 bp to 20.22%. CBN Sells Additional Dollars to Stop Naira Losses
