Nigeria’s fixed income market is heading into a fresh Treasury bills auction with investors expected to channel excess cash into government securities as banking system liquidity approaches N7tn.
The Debt Management Office, on behalf of the Central Bank of Nigeria, is scheduled to offer N800bn in Treasury bills on Wednesday across 91-day, 182-day and 364-day maturities.
The auction comes amid substantial cash balances in the banking system, a development expected to support demand for government debt instruments and potentially push subscription levels above the amount offered.
Market analysts expect investors to favour the 364-day bills as they seek to secure prevailing yields before further declines in short-term interest rates.
The financial system is also expected to receive fresh liquidity of about N2.26tn this week from maturing government securities.
The inflows comprise N2.13tn from Open Market Operations bills reaching maturity and N130.72bn from T-bills repayments.
These repayments will initially increase the
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