Nigeria plans an N800 billion Treasury bill auction this week as the Financial Markets Dealers Association (FMDA) projects N2.813 trillion in inflows, while recent government and central bank sales absorbed liquidity.
In an Oct. 26 report, the association puts expected receipts at N2.813 trillion. Open market operation (OMO) bill maturities make up N2.408 trillion; the forecast also includes N263.58 billion in Federal Government bond coupons, N130.722 billion in Treasury bill maturities and N10.923 billion in corporate bond coupons. These payments return funds to the financial system, while new securities sales pull them out.
The offer assigns N600 billion to 364-day bills and N100 billion each to 91-day and 182-day bills. The FMDA calendar sets the auction for Oct. 28 and settlement for Oct. 29. A notice attributed to the Central Bank of Nigeria (CBN) and republished by Public Procurement NG gives Oct. 28 for bids and results, then Oct. 29 for issuance, allotment and payment.
System liquidity reached N6.936 trillion in the week ended Oct. 23, up 10.39% from N6.283 trillion a week earlier. The FMDA said the increase was smaller than the preceding week's 69.39% rise. Separately, a Federal Government bond auction held Oct. 19 settled N2.024 trillion on Oct. 21, followed by CBN OMO sales on Oct. 22.
CBN figures put the Oct. 22 sales at N855.241 billion in 138-day bills and N1.773 trillion in 180-day bills, against N2 trillion offered. Successful bids carried rates of 17.63% and 17.14%, respectively.
The average secondary-market Treasury bill yield fell 59 basis points to 17.64% in the week ended Oct. 23. The FMDA reported no primary-market Treasury bill auction that week. It identifies this week's N800 billion offer as the main scheduled government-securities liquidity drain and lists Nov. 16 for the next Federal Government bond auction.
