In a strategic move to manage market liquidity and attract investments in naira-denominated assets, the Central Bank of Nigeria (CBN) has announced plans to issue N500 billion worth of Treasury Bills for public subscription at its scheduled midweek auction.
According to the issuance calendar, the CBN will roll out Nigerian Treasury Bills across three maturities—91-day, 182-day, and 364-day—at the primary market auction on Wednesday. Analysts from several fixed-income investment firms anticipate a robust turnout, driven by sustained demand for high-yield naira instruments.
Local banks and authorised dealers continue to channel surplus funds into Treasury Bills, taking advantage of the elevated yields prevailing in the secondary market. This comes amid ongoing disinflation, which has enhanced real returns and encouraged a stronger investor appetite.
Market sentiment remained moderately bullish throughout the current week, marked by selective buying interest across the tenor curve. Activity initially remained subdued but picked up pace as investors focused on the longer-term bills, especially maturities maturing in March, April, and May.
Despite the growing demand, wide bid-offer spreads slightly dampened overall trade volumes. The resurgence in investor interest has been further bolstered by foreign participants offloading OMO bills, in response to global oil price volatility.
In the broader market landscape, the average yield in the Nigerian Treasury Bills segment dipped by 13 basis points, settling at 20.8%. However, in the Open Market Operations (OMO) segment, yields edged higher by 4 basis points, ending the week at 26.9%.
