Interest Rate on 364-day Nigerian Treasury Bills Falls
The interest rate on 364-day tenor Nigerian Treasury bills has been slashed further at the primary market auction conducted by the monetray authority on Wednesday.
The Debt Management Office, on behalf of the Central Bank of Nigeria (CBN), conducted the main auction, where it offered N275.71 billion across standard maturities to investors.
Alpha-seeking investors in the money market placed a total subscription of ₦907.85 billion across the 91-day, 182-day, and 364-day papers, the auction result showed.
Investors, again, showed preference for the one-year Treasury bills which received the largest subscription level. Analysts said in their respective reviews that 98% of the subscription was for the 364-day paper.
At the auction, general bid-to-cover came in at 3.29x, lower than the previous auction’s 4.37x. The huge demand for Nigerian Treasury bills afforded the authority an opportunity to increase allotment in the primary market.
Hence, the DMO sold N527.84 billion, which is 91% higher than the amount the debt management authority offered to investors. One-year tenor paper receiving 97% of the total allotment, according to analysts’ notes reviewed by MarketForces Africa, at a lower spot rate.
The stop rate for the 364-day paper declined further, closing at 22.80%, while rates for the 91-day and 182-day papers held steady for the fourth consecutive auction, TrustBanc Financial Group said in a note. #Interest Rate on 364-day Nigerian Treasury Bills Falls Riskoff Sentiment Provokes Nigeria’s Eurobonds Yields Surge
