CBN Hikes Interest Rates on Treasury Bills, Allots N1.1trn
The Central Bank of Nigeria (CBN) hiked spot rates on Treasury bills at the primary market auction conducted on Wednesday, according to auction results released.
The midweek auction conducted by the Debt Management Office (DMO) on behalf of the monetary authority recorded significant investor subscriptions seeking to position in naira assets.
The treasury bill auction bucket included N100 billion in 91-day bills, N100 billion in 182-day bills, and N500 billion in 364-day bills. The auction recorded about N1.6 trillion in aggregate subscriptions as investors continue to chase elevated yields on fixed-income securities issued by the Debt Office.
The auction results showed that about N1.1 trillion worth of treasury bills were allocated to investors across the three standard tenors.
Stop rates on the 91-day and 364-day bills expanded by 2 basis points (bps) and 36 bps, respectively, to 16.30% and 17.70%, while the 182-day bill remained unchanged at 16.50%.
Subsequently, light flows were observed in the secondary market, with mild buying along the mid- to long-end of the curve, according to CardinalStone Securities Limited. Due to mild buying interest in T-Bills, average yields dipped by 4bps to close at 18.50%. #CBN Hikes Interest Rates on Treasury Bills, Allots N1.1trn#
CBN to Open N700bn in Treasury Bills for Subscription, Rates to Stay Elevated
