The Central Bank of Nigeria (CBN), through the Debt Management Office (DMO), will on Wednesday offer Nigerian Treasury Bills (NTBs) worth N230 billion at the primary market auction. The offer will be spread across the standard tenors of 91-day, 182-day, and 364-day instruments.
Analysts expect stop rates to moderate further, citing sustained disinflation, improved system liquidity, and steady investor appetite for short-term government securities. Traders noted that positive real interest rates—currently at 5.6%—continue to attract market participation, although yields on shorter-dated papers have trended below headline inflation.
Last week, the NTB secondary market traded with a bearish bias as average yields rose on mild sell-offs, despite a late recovery in sentiment following the release of inflation data, which slowed to 21.88% in July. Average benchmark yields closed the week higher, expanding by four basis points to 18.0% in the NTB segment, while yields in the OMO segment dipped slightly to 24.6%.
Market watchers believe the new auction will see cautious bidding, with liquidity from maturing instruments likely to boost demand and exert downward pressure on stop rates. The planned issuance is primarily to refinance N230 billion in maturing obligations.
, through the Debt Management Office (DMO), will on Wednesday offer Nigerian Treasury Bills (NTBs)....){kind=link}