The N109.03 billion in treasury bills that are due in the primary market auction (PMA) was rolled over by the Central Bank of Nigeria (CBN) on Wednesday, November 9, 2022.
The debt instruments are available in three tenors: 91, 182, and 364 days. The bank would offer investors N1.15 billion in three-month bills, N2.83 billion in six-month bills, and N189.06 billion in 12-month bills.
Trading participants would anticipate the central bank to jolt the stop rates up today to maintain demand for the investment instrument, based on the three prior PMAs.
The CBN raised the monetary policy rate (MPR) in each of its most recent two monetary policy committee (MPC) meetings as a result of growing inflation. It hiked the anchor rate twice, first from 13% to 14.0% and then from 14.0% to 15.0%, indicating that it might yet raise the rate if inflation doesn’t go down.
The National Bureau of Statistics (NBS) reported last month that the inflation rate rose from 20.52 percent in August 2022 to 20.77 percent in September 2022.
Due to increases in food and transportation costs brought on by flooding in nearly all of the states of the federation, analysts predict that inflation will surpass the 21% ceiling in October.
