CBN Hikes Rate on Nigerian Treasury Bills, Rejects Excess Bid
The Central Bank of Nigeria (CBN) hikes discount rate on local treasury bills with 364-day maturity at the primary market auction on Wednesday. However, the apex bank kept spot rates on 91-day and 182-day tenors unchanged from the previous auction pricing, according to the auction results.
The authority opened N550 billion worth of Nigerian Treasury bills for investors’ subscription midweek. Reflecting investors; appetite for the naira asset, and solid investors’ sentiment, the subscription came stronger.
Investors sought to park N1.087 trillion into Nigerian Treasury bills, doubling down on the amount the authority planned to mop up. Though, investors demand exceeded offer by N537.49 billion, the authority raised N598.34 billion.
The CBN offered to raise N50 billion from 91-day bills, but investors subscription level was N82.17 billion and the authority allotted N77.22 billion at 18%, the same at the previous auction.
The CBN opened 182-day bill totalling N100 billion for subscription but investors total demand printed at N48.44 billion due to lower appetite. The authority still under allotted, selling N33.50 billion without changing the associated spot rate which printed at 18.50%.
Nigerian Treasury bills with 364 day maturity caught investors attention amidst demand for longest duration in the main market. Investors subscription for 364-day bills reached N956.88 billion as against N400 billion offered by the CBN at the midweek auction, showing strong appetite for the naira asset with one year maturity.
The CBN however allotted N482.62 billion worth of Nigerian Treasury bills with longest maturity, priced at spot rate of 19.63% – 3 basis points above previous discount rate. #CBN Hikes Rate on Nigerian Treasury Bills, Rejects Excess Bid NGX lists Nigeria’s First Telecom Company, Legend Internet Plc
