CBN Cuts Treasury Bills Rates Sharply, Rejects N1trn Subscription
The Central Bank of Nigeria (CBN) has slashed spot rates on Nigerian Treasury bills across standard maturities to sizes, reflecting a shift away from previous trends.
At the primary auction, the Debt Management Office (DMO), on behalf of the monetary policy authority, offered ₦250 billion across 91-day, 182-day, and 364-day tenors.
Demand was strong, with ₦1.329 trillion in bids recorded as investors showed preference for duration. Despite the huge subscription level, the DMO allotted Treasury bills worth ₦201.817 billion to investors.
The CBN offered N100 billion worth of Nigerian Treasury bills with 91 days maturity, but the subscription level came in at N105.07 billion. The authority allotted N59.84 billion worth of 91-day bills to investors at the spot rate of 15.74%, a sharp decline from 17.80% from the previous auction.
The authority offered N20 billion worth of 182-day bills for investors subscription, but investors staked N44.27 billion at the mid-tenor. The CBN sold N15.67 billion worth of 182-day bills to investors at the spot rate of 16.20%, down from 18.35%.
The 364-day Nigerian Treasury bills worth N130 billion was offered at the primary market auction to investors. The one-year bills recorded significant investor ’subscription, with total demand reaching N1.180 trillion, while allotment on the line was N126.31 billion.
Also, the spot rate on 364-day bills was hacked to 16.30% from 18.84% at the previous auction, reflecting the possibility of an interest rate adjustment at the next monetary policy committee meeting. #CBN Cuts Treasury Bills Rates Sharply, Rejects N1trn Subscription#
