Bearly three days after the Central Bank of Nigeria (CBN) through its Monetary Policy Committee (MPC) raised the Monetary Policy Rate (MPR) by four hundred basis points to 22.75 percent from 18.75 percent, stop rates at the Treasury Bills Market has started an upward trend.
The rates closed higher than previous levels at 19.00 percent, 19.50 percent and 21.50 percent compared to 17.24 percent, 18.00 percent and 19.00 percent.
Consequently, the average benchmark yield rose by 37 basis points (bps) week-over-week, settling at 17.85 percent.
This is just as the CBN plans to offer N1.64 trillion worth of Treasury Bills from March 7 to May 23, 2024. This includes N660.62 billion in March, N292.17 billion in April and N688.3 billion in May, with varying maturities
The Treasury Bills Market started the week with increased buying interest on the Feb-2025 papers. However, following the Open Market Operation (OMO) primary market auctions results, the market turned bearish.
At the auction, the CBN offered N500 billion across three maturities, with a total subscription of N1.13 trillion and total amount of N1.05 trillion.
The information concerning CBN’s plans to offer N1.64 trillion worth of Treasury Bills for sale is detailed in the latest release of Nigeria Treasury Bills Issue program by the apex bank, which was made available on Friday.
Treasury Bills, which are instruments for short-term debt (maturity less than one year), are utilised by the CBN to acquire funds from the public on behalf of the Federal Government. Additionally, T-Bills serve as a tool for the CBN to regulate the money supply within the economy.
The T-Bills initiative is scheduled to begin on March 7 and conclude on May 23.
In this time frame, the central bank plans to introduce Treasury Bills totalling N414.29 billion with a maturity period of 91 days, along with N43.74 billion with a 182-day tenor, and N1.18 trillion with a maturity period of 364 days.
An analysis of the program details showed that the central bank intends to auction Treasury Bills worth a total of N660.62 billion in March. This includes N32.73 billion of 91-day bills, N12.97 billion of 182-day bills, and N614.92 billion of 364-day bills.
In April, the central bank intends to offer Treasury Bills totaling N292.17 billion, with breakdowns of N10.61 billion for 91-day bills, N15.97 billion for 182-day bills, and N265.59 billion for 364-day bills.
In May, the CBN intends to offer Treasury Bills with a total value of N688.3 billion, including N362.9 billion in 91-day bills, N14.7 billion in 182-day bills, and N302.67 billion in 384-day bills.
