The Central Bank of Nigeria (CBN), through the Debt Management Office (DMO), will offer Treasury bills worth ₦230 billion at its primary auction on Wednesday.
The issuance will cover the standard tenors of 91-day, 182-day, and 364-day maturities.
Recent improvements in key macroeconomic indicators and robust system liquidity have prompted authorities to lower spot rates. Market sources expect that yields could ease further as investors respond to ongoing disinflationary trends.
“Spot rates across tenors could taper on Wednesday—thanks to disinflation, liquidity, and investors’ appetite for the local bills,” analysts noted.
The real interest rate currently stands at 5.6%, sustaining investor confidence in longer-tenor instruments, although some short-term securities have recently slipped below inflation-adjusted levels.
Last week, trading in the secondary Treasury bills market was muted, with average yields edging higher as investors sold off positions. Activity picked up later in the week following the release of inflation figures at 21.88%, which encouraged renewed buying interest, though average yields still climbed.
Cordros Capital reported that average yields in the Nigerian Treasury Bills (NTB) segment rose by 4 basis points to 18.0%, while the Open Market Operations (OMO) segment saw yields decline by 2 basis points to 24.6%.
Liquidity inflows from maturing OMO and T-bills are expected to boost demand in the coming week, possibly exerting fresh downward pressure on yields. Analysts believe the ₦230 billion auction is primarily targeted at rolling over maturing obligations, with stop rates likely to trend moderately lower.
