CBN Cuts Rate on 364-Day Nigerian Treasury Bills, Rejects N2.4trn
The Central Bank of Nigeria (CBN) further chopped the discount rate on Nigerian Treasury bills with a 364-day maturity amidst growing interest in long-duration naira assets.
The Debt Management Office (DMO), on behalf of the monetary authority, led the midweek primary market auction where N700 billion worth of Nigerian Treasury bills were offered for subscription.
The auction attracted significant investor interest, with total subscription printing at N3.618 trillion, according to subscription details from the authority – more than 5 times the total offer.
Analysts reported that 91-day Treasury bills with N100 billion on offer were oversubscribed, with total subscription totalling N135.74 billion. The CBN allocated N130.72 billion from the amount bid to investors at the rate of 16.30%, unchanged from the previous auction.
Also, the 182-day offer totalling N100 billion put on the table for investors’ subscription beat its target. Total subscription settled at N104.74 billion in investors’ money.
The CBN allotted N99.18 billion at the rate of 16.50%, the same as the previous.
The Nigerian Treasury bills with 364-day tenors attracted massive subscription totalling N3.378 trillion, and the CBN allotted N1.017 trillion. The spot rate was cut to 17.35% from 17.66%.
Overall, the authority allotted a total of N1.2 trillion across tenors and rejected N2.4 trillion in excess subscriptions. #CBN Cuts Rate on 364-Day Nigerian Treasury Bills, Rejects N2.4trn
