The Central Bank of Nigeria (CBN) will on Wednesday open the Nigerian Treasury Bills (NTBs) for investors’ subscription with a total offer size of N1.15 trillion.
The apex bank, through the Debt Management Office (DMO), will offer 91, 182, and 364 days’ tenor debt instrument for investors
According to the data, the standard tenors offer size is split as N150 billion for 91-day bills, N200 billion for 182-day bills, and N800 billion for subscription by investors with interest in 364-day bills.
Investment experts anticipate that like previous offers by the apex bank, there will be excess subscriptions for the debt instrument given the strong liquidity levels in the financial system. Currently, there is excess of N4 trillion in circulation based on data from the apex bank
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However, they expect the N1.15 trillion Treasury bills auction to absorb part of the excess liquidity, potentially moderating system balances post-settlement. In addition, the market expects N765.89 billion inflow from matured treasury bills during the week.
The experts also expect that in the absence of aggressive OMO bills sterilisation, interbank rates will remain broadly stable around current levels as spot rates are also expected to be anchored on the 15.10% headline inflation just released by the National Bureau of Statistics (NBS) today.
Last week, the Nigerian Treasury secondary market closed on a bullish note, with average benchmark yield declining marginally by -1bp w/w to close at 17.62% just as similar trend played out in the secondary OMO market as average benchmark yield declined by -57bps to close at 20.63%
