CBN Offers Investors 23.50% Interest Rate on Treasury Bills
The spot rate on one-year Treasury Bills (NTBs) issued by the Central Bank of Nigeria (CBN) increased by 50 basis points to 23.50% during the recently concluded primary market auction.
The Debt Management Office refinanced or rolled over N610.80 billion in maturing Treasury bills at the auction conducted on behalf of the monetary authority midweek. The auction was significantly oversubscribed by yield-seeking investors in the market.
Details from the auction results revealed that total subscriptions came at N1.17 trillion across standard maturities: the 91-, 182-, and 364-day maturities.
Local investors showed preference for long-dated bills that received the highest bids amidst the expectation that rates would surge at the end of the curve to compensate for inflation pressures.
The rates for the 91-day and 182-day Treasury Bills remained unchanged, while the rate for the 364-day bill increased from 23.00% to 23.50%, details from the primary market auction results revealed.
There was under-subscription for the 91-day and 182-day Treasury Bills, with subscription levels at 84.53% and 66.36% of the total offer, respectively. Allotments for these tenors were 84.53% and 59.47% of the total offer.
In contrast, the 364-day Treasury bill saw significant oversubscription, with total bids reaching N1.12 trillion, nearly double the N540.45 billion offered. This highlights strong investor demand for longer-tenor bills, Alpha Morgan Capital Limited said. FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers
