CBN to Auction ₦750bn Treasury Bills Wednesday
The Central Bank of Nigeria (CBN) will auction ₦750 billion worth of treasury bills on Wednesday, offering investors opportunities across three maturities—91-day, 182-day, and 364-day instruments.
According to market details, the bank plans to raise ₦100 billion from 91-day bills, ₦150 billion from 182-day bills, and a larger ₦500 billion from 364-day bills, reflecting strong investor appetite for longer-term securities.
The heavy allocation to the 364-day tenor highlights growing preference for longer instruments, even as yields on shorter maturities continue to decline.
Liquidity in the financial system remains high at about ₦3.84 trillion, boosted by deposits at the Standing Deposit Facility and expected inflows of ₦1.6 trillion from maturing bills, OMO instruments, and bond coupon payments.
Despite strong demand, yields have been trending downward. At the last auction, the 182-day bill rate fell to 16.19% from 16.42%, while the 364-day bill dropped to 16.199% from 16.43%. The 91-day tenor remained unchanged.
The auction comes amid evolving macroeconomic conditions. Inflationary pressures have begun to ease, altering real return dynamics for investors.
With the monetary policy rate at 26.5% and inflation at 15.38%, the real interest rate stands at about 11.12%, though continued rate compression is narrowing effective returns in the fixed-income market.
Analysts say the auction will test investor sentiment, balancing government borrowing needs with the CBN’s goal of maintaining stability in the financial system.
