The Central Bank of Nigeria (CBN) is gearing up to launch its final treasury bills auction for the year this Wednesday, according to the recently released auction calendar. In this round, the bank will make ₦570 billion worth of treasury bills available to investors across its usual maturities.
Analysts expect the auction to be heavily oversubscribed, as investor appetite for naira-denominated assets remains strong amid a favorable monetary backdrop. The pattern of strong demand and potential rejection rates will be closely watched, offering insight into market sentiment, say fixed-income strategists.
The offered ₦570 billion is divided across three maturities:
- ₦100 billion in 91-day bills
- ₦120 billion in 182-day bills
- ₦350 billion in 364-day bills
While demand is expected to exceed supply, many analysts foresee a decline in stop rates (i.e. yields) across the tenors, in light of recent monetary easing signals.
For context, in the September auction the CBN floated ₦290 billion in treasury bills. Total subscription came in at ₦1.479 trillion, but the allotment was pegged at ₦345.1 billion. That auction saw cuts in stop rates: the 91-day paper priced at 15 percent (down from 15.32 percent), the 182-day at 15.30 percent (from 15.50 percent), and the 364-day maturity at 16.78 percent (previously 17.69 percent).
Market watchers say that the CBN’s return to open market operations (OMO) — after a month’s absence — sparked notable compression in yields. With rates already moderating in secondary markets, the expectation is for further downward pressure, especially on the one-year paper.
 is gearing up to launch its final treasury bills auction for the year this Wednesday, according to the recently released auction calendar. In this round, the bank will make ₦570 billion worth of treasury bills available to investors across its usual maturities.){kind=link}