Based on the surging demand for debt instruments over the past few months in the nation’s investment market, the Central Bank of Nigeria (CBN) is scheduled to offer N700 billion in Federal Government of Nigeria (FGN)Treasury bills (TBs) at a primary market auction tomorrow.
According to the auction circular issued by the apex bank, the TB offer, totalling N700 billion, will be split across 91-day, 182-day and 364-day maturities.
The 91-day and 182-day bills will each account for N100 billion, while the 364-day instrument will get the largest allocation of N500 billion.
Investment experts anticipate that given the excess liquidity in the financial system, demand for the debt instruments will remain strong as fixed-income market investors continue to increase bets on naira assets.
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They hinged their projection on investors’ surging appetite for long-duration paper, noting that the one-year TB will continue to dominate the demand in the market while spot rates are expected to drop following a slowdown in the July 2026 headline inflation rate.
In addition, the analysts anticipate lower spot rates at tomorrow’s TB auction, given the latest Debt Management Office’s (DMO’s) bond market offers, during which there were reduced returns across reopened bonds.
During last week’s trading session, investor attention remained focused on the forthcoming primary market auction, as market participants sought to explore the opportunity of the prevailing high yields before any potential repricing downward.
Fixed income market experts also noted that the easing of headline inflation to 15.43% in July 2026 had also improved the real-return outlook for fixed-income investors, especially as nominal TB yields remained above the inflation rate.
