The Central Bank of Nigeria (CBN) is set to float ₦162.02 billion worth of Treasury Bills (T-Bills) in its second auction for the month, targeting investors across short, medium, and long-term tenures. This comes ahead of a scheduled ₦27.19 billion maturity.
The auction, slated for Wednesday, will feature ₦22.02 billion in 91-day bills, with analysts projecting an expected stop rate between 17.84% and 17.94%. The CBN will also offer ₦40 billion in 182-day instruments, with cut-off rate estimates ranging from 18.44% to 18.54%.
At the longer end, the apex bank plans to issue ₦100 billion in 364-day bills, with yields anticipated between 18.84% and 19.04%.
Market analysts are forecasting a mixed yield outlook due to Nigeria’s continued disinflation trajectory, now in its second consecutive month of decline. At the previous auction, the 91-day stop rate declined slightly to 17.98%, the 182-day held steady at 18.50%, while the 364-day bill dropped 21 basis points to 19.35%.
Analysts at AAG Capital noted that strong demand for short-term debt, a liquid interbank environment, and reduced bond issuance are creating a bullish outlook for T-Bill subscriptions. However, the CBN’s recent issuance of Open Market Operation (OMO) bills at a 28% yield could dampen investor appetite for the 364-day bills.
“OMO instruments are significantly more attractive to institutional investors, particularly those with appetite for higher returns,” said AAG Capital. “This dynamic could suppress liquidity in the one-year T-Bill market, with effective yields struggling to compete.”
The auction results are expected to serve as a barometer for market sentiment amid ongoing monetary tightening and an evolving interest rate environment.
 is set to float ₦162.02 billion worth of Treasury Bills (T-Bills) in its second auction for the month....){kind=link}