March 03, (THEWILL) — The Central Bank of Nigeria (CBN) has opened a primary market auction for ₦1.05 trillion worth of Treasury bills, aimed largely at refinancing about ₦799 billion of maturing T-bills due at the end of this week.
Under the issuance circular for the Thursday auction, the offered amount spans the usual three maturities: 91-day, 182-day, and 364-day Treasury bills, providing investors with a range of short-to-medium-term government securities to subscribe for.
Of the maturing bills being refinanced- ₦31.18 billion is from the 91-day tenor, ₦18.32 billion is 182-day bills, and the bulk about ₦619.36 billion comes from the 364-day bills.
The auction is taking place in the context of Nigeria’s broader monetary policy shift, following a 50-basis-point reduction in the Monetary Policy Rate (MPR) to 26.5 per cent, the first cut after a prolonged tightening cycle designed to curb inflation and stabilise prices.
In the secondary market, benchmark Treasury yields have responded to these developments with a decline in average yields to about 17.23 percent, reflecting improved market sentiment ahead of the auction results.
The Thursday auction will be key to shaping near-term interest rate expectations on government securities, as subscription levels and stop rates across the tenors provide clues on investor appetite and liquidity dynamics in the financial system.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
