CBN Hikes Rate on 364-Day Treasury Bill to 16.73%
The Central Bank of Nigeria (CBN) hiked the discount rate on Nigerian Treasury bills with 364-day maturity by 83 basis points to 16.73% at the main auction conducted on Wednesday.
The authority offered to sell Treasury bills totalling N1.05 trillion across standard maturities at the midweek auction. The CBN opened Treasury bills with 91-day tenor totalling N100 billion for investors’ subscription, N150 billion for 182-day and N800 billion for one-year papers.
Total subscription came in at N2.344 trillion, according to auction results reviewed by MarketForces Africa. Given the excess demand, the CBN allotted N1.011 trillion worth of Treasury bills to investors, altered rates for 91-day and 364-day bills.
Breakdown showed that investors received allotment totalling N64.27 billion for Nigerian Treasury bills with 91 days expiration, which is below aggregate subscription of N80.923 billion and offer size of N100 billion.
Investors was allotted N91.43 billion worth of Treasury bills with 182 days to maturity, as against total demand of N136.539 billion that chased N150 billion offer size at the auction.
Treasury bills with 364 day to maturity saw significant demand totalling N2.128 trillion, with total allotment of N856.03 billion, versus N800 billion that was offered for subscription.
The spot rate for 91 days bills was increased by 15 basis points to 15.95% at the midweek auction, and 364 -day bills attracted 19.73% from 15.90% at the previous auction.
The CBN priced 182 day bills at 16.65%, the same spot rate offered for the allotment made to investors at the previous auction. CBN to Open Treasury Bills for Subscription as N799bn Mature
