The Central Bank of Nigeria (CBN) is set to offer treasury bills valued at N550 billion for subscription during a primary market auction scheduled for Wednesday.
The offering will feature instruments with 91-day, 182-day, and 364-day maturities and is expected to draw significant interest from investors, underscoring sustained appetite for naira-denominated assets.
Nevertheless, financial analysts anticipate a further moderation in spot rates, following a substantial reduction in the amount allocated by the monetary authority to investors, alongside tightened discount rates.
In April, the CBN raised N1.14 trillion through treasury bills, marking a 59.64% month-on-month decline compared to the volume sold in March.
According to MarketForces Africa, the central bank secured N2.82 trillion in March through a heavily oversubscribed primary market auction, signaling persistent demand for local currency instruments despite global shifts in investment sentiment.
To make up for the decline in treasury bills issuance, the CBN held two separate primary market auctions in April.
Additionally, the apex bank conducted an Open Market Operations (OMO) auction last Tuesday, offering securities totaling N500 billion—comprising N250 billion each in 329-day and 350-day maturities.
The OMO sale was met with robust demand, recording an oversubscription of N556.85 billion. Total bids stood at N1.06 trillion, with the CBN ultimately allotting N804.85 billion.
Further breakdown revealed that investors were allotted N106.25 billion worth of the 329-day OMO instruments, while N698.60 billion was allocated to those bidding for the 350-day bills. Stop rates concluded at 22.69% for the 329-day tenor and 22.73% for the 350-day note, aligning with market expectations.
On Friday, movements along the Nigerian Interbank Treasury Bills True Yield (NITTY) curve were mixed. Despite this, the average yield on treasury bills edged higher by 21 basis points to 21.05%, signaling a modest increase in short-term borrowing costs.
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