The Central Bank of Nigeria (CBN) plans to auction a ₦610.08 billion worth of treasury bill as the United Kingdom Office for National Statistics is expected to release the country’s Consumer Price Index (CPI) following the unexpected fall to 1.7 percent in September.
The Debt Management Office will be issuing three tranches of FGN bonds worth ₦120 billion today, according to BusinessDay.
The issuance includes the reopening of a five-year ₦60 billion bond alongside reopenings of a seven-year bond, valued at ₦60 billion.
At the last auction in August, DMO sold ₦289.60 billion across the two bonds offered with the marginal rates of the longest tenure at 21.74 percent.
It sold more than double its offer on its longest tenure (reopened seven-year bond) in the October FGN bond auction.
The ₦120 billion FGN bonds offered across three tranches on Monday are the lowest auctioned this year, down from ₦300 billion offered last month.
Analysts said that the reduced offer size signalled a possible reduction in government borrowing.
The DMO is set to issue between ₦80-₦100 billion at every auction in the fourth quarter of 2024.
The Central Bank of Nigeria will be auctioning treasury bills worth ₦610.08 billion on Wednesday.
It will be auctioning ₦41.89 billion for a 91-day tenor, ₦28.45 billion for the 182-day tenor, and ₦487.23 billion for the 364-day tenor.
At the last auction, CBN rolled over a total of ₦374.67 billion across the 91-, 182-, and 364-day tenors and sold only₦540.45 billion.
A total of ₦626.33 billion worth of T-bills was sold, higher than the ₦513.43 billion maturing bills rolled over by the Central Bank of Nigeria (CBN) on Wednesday, November 6.
The yield on the one-year T-bills increased to 29.87 percent from 26.02 percent, the highest on record.
The shorter treasury bills saw minimal interest from investors. Only ₦13.99 billion of the ₦20.74 billion 91-day bill was sold.
Similarly, the 182-day bill got only ₦3.40 billion allotment, despite a ₦5.43 billion offer.
Yields on the 182-day and 91-day bills increased for the first time in three auctions to 20.39 percent and 18.86 percent, respectively.
The CBN plans to issue ₦2.20 trillion in treasury bills during the fourth quarter of 2024, matching the amount set to mature from September to November this year.
The amount to be offered in Q4 is 41.03 percent higher than ₦1.56 trillion issued in the preceding (third) quarter of 2024.
