1 week Ago By Rapheal
By Chinwendu ObienyiThe Central Bank of Nigeria (CBN) is set to offer N400 billion worth of maturing Nigerian Treasury Bills (NTBs) for subscription in a fresh round of auctions aimed at stabilising liquidity and managing inflationary pressures within the economy.According to details sourced by Daily Sun, the auction will be conducted through a Primary Market Auction (PMA), with settlement expected the following day. The reissuance is part of efforts to refinance approximately N927 billion in maturing government securities.
The offering will include; N50 billion in 91-days bills, N100 billion in 182-days bills and N650 billion in 364-day bills.Analysts suggest that the move demonstrates the CBN’s ongoing strategy to mop up excess liquidity from the financial system, particularly as the National Bureau of Statistics (NBS) recently revealed that inflation increased by 105 basis points (bps) to 24.23 per cent year-on-year (y/y) in March 2024.
The news seemed to dampen the Treasury bills secondary market which traded with mixed sentiments. Nonetheless, market activities reflected renewed buy-interest from offshore investors, with onshore investors tilting toward a more cautious approach.Consequently, the average yield declined by 57bps to 24.
3 per cent. Across the market segments, the average yield declined by 15bps and 107bps to 20.9 per cent and 28.
2 per cent in the NTB and OMO segments, respectively. “Given our expectations for improved system liquidity next week, we anticipate an improvement in the demand for bills, causing yields to taper slightly. Additionally, the CBN is scheduled to conduct an NTB PMA on Wednesday with N400 billion worth of maturing bills on offer.
At the auction, we expect rates to taper, albeit slightly”, analysts at Cordros Research said. Market watchers will be monitoring yield movements closely, especially with rising investor appetite for safe, short-term securities amid global and domestic economic uncertainties. $(document).
ready(function(){(adsbygoogle = window.adsbygoogle || []).push({})}); The post CBN plans N400bn treasury bill reissuance appeared first on The Sun Nigeria.
.
