CBN Hikes Rates on Treasury Bills with 91, 182-Day Tenors
The Central Bank of Nigeria (CBN) extended its upward spot rates adjustment on Nigerian Treasury bills allotted to investors at the final auction conducted for the year 2025 on Wednesday.
At the primary market auction, the CBN offered Nigerian Treasury bills totalling ₦700 billion for investors’ subscription, split across three maturities: 91-day, 182-day and 364 day bills.
The midweek auction attracted significant interest from investors seeking to take positions amidst sustained spot rates repricing that started in December.
Total subscription came in at N1.509 trillion, more than twice the offer size pushed out for investors’ subscription. The Nigerian Treasury bills with one-year maturity attracted significant patronage with subscription levels at N1.385 trillion. The amount bet on the one-year bills surpassed a total offer of N500 billion by more than 2 times.
But mid-tenor or 182 days Nigerian Treasury bills failed to achieve the CBN N100 billion subscription target. Investors placed N22.66 billion in subscriptions against the offer size, thus significantly underperforming expectations.
The short-tenor beat N100 billion subscription target set by the authority. Investors chased the N100 billion offer size with N100.63 billion, auction results reviewed by MarketForces Africa shows.
Allotment
While CBN offered to sell N100 billion worth of 91 days treasury bills, total allotment made was N100.01 billion to investors seeking short term bets on the investment securities. Spot rate on 91 days bills rose by 20 basis points to 15.50%.
The mid-tenor offer of N100 billion was undersubscribed, and thus the authority allotted N22.07 billion from the paltry demand price. The CBN however increased spot rate on the mid-tenor by 45 basis points to 15.95% on Wednesday.
After two consecutive spot rates upward adjustments, the CBN scaled back arte pricing on Nigerian Treasury bills with 364 days to maturity. Investors’ subscription for one-year bills came stronger as usual due to sustained appetite for duration.
A total subscription of N1.385 trillion chased N500 billion offer size at the auction. The authority made N581.99 billion allotment and reduced the spot rate on 364 days bills to 17.51% from 17.95%. CBN Extends Rates Hike Generosity on Treasury Bills First HoldCo Extends Rally on Strategic Divestment, Closes at Record High
