CBN Hikes Interest Rates on Treasury Bills to 17.34%
The Central Bank of Nigeria (CBN) hiked rates on Nigerian Treasury bills on Wednesday, with one-year paper attracting most of the allotment.
At the midweek auction, the authority offered N1 trillion in Treasury bills for investors’ subscription across standard tenors – 91, 182 and 364 days to maturity.
Investors’ subscription printed at N1.863 trillion versus N1 trillion offer size. The Apex Bank allotted N1.437 trillion from the total bids submitted at the auction.
Auction results showed that 91-day and 364-day bills were oversubscribed, while 182-day paper underperformed the N100 billion target.
The breakdown showed that the 91-day bill attracted N129.69 billion in subscriptions, more than N29 billion above the offer size for the short-term tenor investment option.
A total of N129.32 billion in 91-day bills was sold to investors at a spot rate of 16.28%, up from 16.05% at the previous auction.
At the mid-tenor, 182-day treasury bills subscription printed at N70.22 billion, reflecting low appetite, significantly below the N100 billion offered at the auction. The CBN allocated N70.17 billion to investors at the rate of 16.50%, up from 16.19% at the previous auction.
One-year bills attracted N1.663 trillion in subscriptions from banks and other asset managers seeking to lock down yield for longer-tenor investments. The authority allotted N1.291 trillion at the rate of 17.34%, up from 16.35%. CBN Mandates Banks, Fintechs to Host Payment Data Locally
