Initiating a Treasury Bills Primary Market Auction (PMA) on Wednesday, the Central Bank of Nigeria (CBN) commenced the process as outlined in the latest T-Bills schedule.
During the PMA, existing T-Bills worth a total of N161.50 billion (with N730 million, N920 million, and N159.85 billion allocated across the 91-day, 182-day, and 364-day instruments respectively) are set to mature and roll over.
Meristem Wealth Management Limited expressed its expectations for the auction, predicting that rates would remain steady across all three instruments. The anticipation is that the lower offering amount may discourage significant investor engagement, aligning with their forecast.
Despite this, the focus on liquidity management and the central bank’s dedication to ensuring fixed income rates match the prevailing yield environment are key factors driving efforts to maintain attractive rates for investors.
Previously, at the last PMA auction, the CBN had presented a total of N337.89 billion spread across the three instruments, marking a 27.27% increase from the N265.50 billion initially offered.
Treasury bills serve as marketable money market securities that aid in government fundraising and also function as monetary policy tools utilized by the CBN.