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The Central Bank of Nigeria (CBN) is set to offer N550 billion worth of Nigerian Treasury Bills (NTBs) for subscription this week, in line with its auction calendar. The issuance, scheduled for Wednesday at the primary market auction, will provide investors with an opportunity to subscribe to short-term government securities.
The offering will be distributed across the standard maturities of 91 days, 182 days, and 364 days. An analyst said that Africa anticipates a strong oversubscription, driven by prevailing market conditions and investor sentiment.
Additionally, the week will see the maturity of N162.17 billion worth of Treasury Bills across various tenors. With interest rate projections indicating a downward trend, analysts foresee heightened investor participation and a marginal decline in market yields.
At the previous auction, the CBN offered N650 billion worth of NTBs, attracting significant demand. Total subscriptions reached N1.92 trillion, reflecting a bid-to-offer ratio of 2.32x. However, the apex bank opted to sell only N830.44 billion, carefully managing market liquidity.
The stop rates at the auction showed mixed trends, with the 91-day bill remaining steady at 17.00%, while the 182-day and 364-day tenors declined to 17.75% and 17.82%, down from 18.00% and 18.43%, respectively, at the prior auction.
In addition, the CBN conducted an Open Market Operations (OMO) auction, targeting local banks and foreign portfolio investors. The central bank offered N600 billion across 355-day and 362-day tenors, receiving total subscriptions of N1.88 trillion. As a result, it sold N1.68 trillion, achieving a bid-to-cover ratio of 1.12x.
Stop rates at the OMO auction continued their downward movement, settling at 19.19% and 19.45%, reflecting sustained investor demand for fixed-income securities.
This latest NTB issuance by the CBN is expected to further gauge investor appetite amid shifting interest rate dynamics and evolving market trends.
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