The interest rates on Nigerian Treasury Bills (NTBs) have fallen ahead of a major auction by the Central Bank of Nigeria (CBN), where the government plans to raise N670 billion by selling new Treasury bills......CLICK HERE TO CONTINUE READING>>>.....CLICK HERE TO CONTINUE READING>>>
Investors in the secondary market (where previously issued Treasury bills are traded) have shown strong demand for these short-term government securities. Many are particularly interested in the longer-term bills that mature in December and January.
Market experts at AIICO Capital Limited observed that investors are eager to buy, but those who already hold these bills are hesitant to sell, hoping for even lower yields before the auction.
As a result of this high demand, the average interest rate on NTBs in the secondary market dropped slightly to 23.27%. The most sought-after Treasury bills, maturing on December 25 and January 22, were trading at rates between 20.80% and 20.35%.
During the upcoming auction, the government will sell Treasury bills with three different maturity periods:
91-day bills (3 months)
182-day bills (6 months)
364-day bills (1 year)
This auction will provide an opportunity for investors to buy government securities directly from the CBN at competitive rates.