CBN to Float N230bn Treasury Bills at Primary Auction Wednesday
The Central Bank of Nigeria (CBN) is set to issue Nigerian Treasury Bills worth N230 billion at the primary market auction on Wednesday.
The Debt Management Office (DMO), acting on behalf of the apex bank, will make available the usual tenors—91-day, 182-day, and 364-day instruments.
Recent improvements in macroeconomic indicators, coupled with robust system liquidity, have enabled the authorities to steadily reduce spot rates. Bank traders told MarketForces Africa they expect yields on naira-denominated assets to ease further if the disinflation trend holds.
“Spot rates across tenors could taper on Wednesday—thanks to disinflation, liquidity, and investors’ appetite for the local bills,” analysts said.
Although real interest rates remain positive at 5.6% this year, yields on some short-term government securities have dipped below inflation levels.
In the secondary market last week, Treasury bills trading slowed with a bearish tone, as average yields rose due to sell-offs. Liquidity pressures had initially sparked mixed sentiment, but some buying interest returned after inflation figures came in at 21.88%. Despite this rebound, benchmark yields still edged higher.
Cordros Capital noted that cautious positioning is expected ahead of the auction, adding that last week, the average NTB yield rose by 4 basis points to 18.0%, while OMO bills eased slightly by 2 basis points to 24.6%.
With inflows from maturing OMO and Treasury bills expected to boost liquidity this week, analysts anticipate stronger demand for fresh issues, which may put pressure on yields. The upcoming N230 billion auction is primarily aimed at refinancing existing maturities, and experts forecast a mild adjustment in stop rates.
