Despite the unimpressive Open Market Operations (OMO) bills auction by it on Tuesday, the Central Bank of Nigeria (CBN) is scheduled to open treasury bills for subscription today.
Available information on its planned NTBs subscription today indicated that apex bank will open N1.15 trillion in Treasury bills for subscription across standard tenors, amid strong liquidity in the financial system
On Tuesday, the CBN offered OMO auctions totalling N600.00 billion across 7-day, 98-day, and 105-day bills, but allotted N235.60 billion for just the 98-day and 105-day bills, with stop rates clearing at 19.35% and 19.40%, respectively.
Demand for the NTBs was very high at N711.85 billion across the offered bills but allotment was weaker than anticipated, suggesting a well-contested primary market auction.
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Meanwhile, trading activities in the secondary market for NTBs on Tuesday was bullish, with the average benchmark yield declining marginally by 1% basic points to 17.23%.
Similarly, trading in the OMO secondary market ended on a bullish note with the average benchmark yield declining 1% bp to 20.22%.
With the planned offer of additional NTBs by the apex bank today for subscription, investment analysts anticipate transactions on the debt instruments to moderate further as investors’ attention will shift to the 364-day bill, which is expected to account for a large share of subscriptions.
