Central Bank of Nigeria (CBN) has initiated a Treasury Bills Primary Market Auction (PMA), as disclosed by its latest T-Bills schedule on Wednesday.
The auction is set to manage existing Treasury bills worth a total of N161.50 billion, comprising N730 million, N920 million, and N159.85 billion spread across the 91-day, 182-day, and 364-day instruments, respectively, which are due for maturity and rollover.
Market analysts anticipate that interest rates will remain relatively stable across all three instruments during the auction, with the lower offer amount possibly limiting investor participation.
“In the upcoming auction, we anticipate rates to hover around current levels across all trio instruments. The lower offer amount may deter significant investor participation, which further supports our expectations.
“Nevertheless, it is essential to acknowledge the continued focus on liquidity management and the central bank’s commitment to ensuring that fixed income rates correspond with the prevailing yield environment. This concerted effort aims to sustain rates at attractive levels for investors,” said Meristem Wealth Management Limited ahead of the T-Bills auction.
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At the preceding auction, the CBN offered a total of N337.89 billion across the trio of instruments, marking a 27.27% increase from the previous offering of N265.50 billion.
Treasury bills, regarded as marketable money market securities, serve dual purposes of raising funds for the government and acting as monetary policy tools by the CBN.
