Federal Government to Auction N500 Billion in T-Bills Today

The federal government is set to auction N500 billion in Treasury Bills today, with the Central Bank of Nigeria conducting the auction on behalf of the Debt Management Office. The auction will consist of N100 billion of 91-day bills, N100 billion of 182-day bills, and N300 billion of 364-day bills.

This auction occurs as liquidity in the financial system has significantly increased, with the Financial Markets Dealers Association reporting a 15.97 percent rise in liquidity to N2.86 trillion from N2.46 trillion, following an inflow of approximately N4.45 trillion the previous week. For the current week, an estimated N2.47 trillion is anticipated to flow into the market, primarily from N2.27 trillion in OMO maturities.

Additionally, FGN bond coupons are expected to contribute N166.62 billion, while Treasury Bills and commercial paper maturities are projected at N28.04 billion and N5.51 billion, respectively. Average Treasury Bills yield has moderated to 18.77 percent as of September 18, compared to 18.57 percent the previous week.