The Central Bank of Nigeria (CBN) is set to auction N480 billion worth of Treasury bills this Wednesday, offering investors an opportunity to subscribe across the standard 91-day, 182-day, and 364-day maturities. The auction, to be conducted by the Debt Management Office (DMO) on behalf of the apex bank, is expected to attract robust demand.
Market analysts noted that the offer will coincide with maturing Treasury bills worth N324.41 billion, which will inject additional liquidity into the system and strengthen subscription levels.
However, rate expectations remain mixed among analysts, given the CBN’s recent stance at open market operations (OMO). Last week, the bank conducted two OMO auctions totaling ₦700 billion but ended up absorbing ₦1.19 trillion, with stop rates closing at 26.49% and 26.50% for the 83-day and 84-day instruments.
Fixed-income experts believe the central bank may not offer attractive yields on Treasury bills, given its recent pricing of OMO securities sold to both foreign portfolio investors and local banks at relatively high rates.
Analysts at AAG Capital Limited commented: “The first Treasury bills auction for September is expected to attract strong demand. We anticipate a mixed outcome, given prevailing volatility in the market, but interest in longer-dated instruments should persist.”
During the previous week, the Treasury bills market witnessed subdued activity as investors waited for the bond auction. Limited trading was seen in select short-term papers, including the 16-Dec, 17-Feb, and 7-Apr maturities, while activity in the OMO segment dominated market attention.
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