The Central Bank of Nigeria (CBN) has issued N450 billion Nigerian Treasury Bills (NTBs) at the latest primary market auction. The full allotment is expected to mop up N369.16 billion liquidity from the financial system.
The auction, on behalf of the Debt Management Office (DMO), shows the Federal Government’s continued reliance on short term domestic borrowing to finance its deficits.
The allocation comprises N350 billion for 364 day bills, N50 billion for 91 day and another N50 billion for 182 day treasury bills. Thus, one year NTBs account for 77.8 per cent of the total value of bills issued.
The News Chronicle reports that investor interest in longer dated Treasury bills remains strong despite a gradual decline in yields.At the October 7 auction, the Debt Management Office (DMO) sold N968.47 billion against N900 billion on tap, led by demand for the 364-day paper.
The demand for the one-year bill came in at N1.683 trillion against N700 billion offered. Its stop rate fell to 15.85 per cent from 15.89 per cent in the previous auction.
The government expects to issue N5.40 trillion of Treasury bills in the fourth quarter of 2026 against N5.429 trillion of bills due to mature.
Nigeria’s inflation data is also an important indicator to investors in the government’s latest borrowing program, which is expected to provide insight into monetary policy and potential changes in Treasury bill yields. However, borrowing levels, market liquidity and investor demand will remain important factors shaping returns.
