Interest Rate on Nigerian Treasury Bill Falls Below 17%
The interest rate on a Nigerian Treasury bill with a 364-day maturity has fallen below 17%, according to the Central Bank of Nigeria’s (CBN) primary market auction results.
The Apex Bank conducted its first Treasury bill auction today in Sept, offering N750 billion in short-term investment instruments across standard tenors.
The CBN opened N150 billion in 91-day bills for investor subscription, targeting N100 billion and N500 billion from 182- and 364-day Treasury bills.
The auction attracted about N3.350 trillion in aggregate subscription across the tenors. The authority allotted Treasury bills totalling N865.72 billion to investors.
While the CBN offered N150 billion for 91 days, demand came in much lower at N78.82 billion, and the total allotment approved was N76.28 billion at the spot rate of 16.30% – the same as the previous auction.
Investors’ subscription to 182-day bills came in weaker at N33.51 billion, against the N100 billion offered at the auction. The CBN allotted N27.27 billion at a rate of 16.50%, the same as the previous auction offer.
The market bets N3.238 trillion on 364-day Nigerian Treasury bills, more than six times its offer size at the midweek auction.
The CBN approved N762.17 billion at a spot rate of 16.84%, down from 17.15% in the previous auction in August. This also marked the second consecutive price drop for one-year treasury bills.
