Financial analysts predict a stable outlook for Nigeria's upcoming Treasury Bills auction, with rates expected to remain steady despite increased offer amounts and enhanced system liquidity.
Key Details:
- The Central Bank of Nigeria (CBN) will auction T-Bills totaling NGN 228.72bn, with varying maturities across 91-day, 182-day, and 364-day instruments.
- The previous auction offered N44.23bn, a decrease from N221.13bn, leading to a subscription of N407.76bn, which was 9.22% higher than the offer.
- Stop rates declined marginally across all maturity periods.
- Analysts from Meristem Securities Limited expect rates to remain around previous levels to manage borrowing costs, though the higher offer amount might marginally increase rates.
- In the secondary market, investor preference for longer-term bills briefly drove yields down to 21.02% by mid-June.
The CBN’s strategic rate guidance aims to balance investment returns with successful auction outcomes, with recommended stop rates of 16.30% for 91-day, 17.44% for 182-day, and 20.50% for 364-day instruments.
Key Details:
- The Central Bank of Nigeria (CBN) will auction T-Bills totaling NGN 228.72bn, with varying maturities across 91-day, 182-day, and 364-day instruments.
- The previous auction offered N44.23bn, a decrease from N221.13bn, leading to a subscription of N407.76bn, which was 9.22% higher than the offer.
- Stop rates declined marginally across all maturity periods.
- Analysts from Meristem Securities Limited expect rates to remain around previous levels to manage borrowing costs, though the higher offer amount might marginally increase rates.
- In the secondary market, investor preference for longer-term bills briefly drove yields down to 21.02% by mid-June.
The CBN’s strategic rate guidance aims to balance investment returns with successful auction outcomes, with recommended stop rates of 16.30% for 91-day, 17.44% for 182-day, and 20.50% for 364-day instruments.