CBN Slices Interest Rates on 182, 364-Day Treasury bills
The Central Bank of Nigeria (CBN) sliced spot rate on Nigerian Treasury bills (NTB) with 182-day and 364-day tenors, reflecting the authority’s move to reduce borrowing costs.
The monetary authority has been reducing its spot rates on the mid- and long-term tenors allotment, keeping its offer pricing for 91-day bills stable.
At the auction, the CBN offered Nigerian Treasury bills totalling N700 billion across standard tenors for investors’ subscription. Meanwhile, yield-hunting fixed-income securities investors’ aggregate bids came stronger, amounting to about N2.958 trillion.
However, the CBN allotted treasury bills worth N731 billion to investors across the three tenors that were placed for subscription at the midweek auction.
Nigerian Treasury bills with 91-day tenors worth N100 billion were offered to investors; the total subscription submitted was N96.777 billion, and allotment settled at N94.823 billion at the rate of 15.95%, the same as the previous auction.
An offer of N100 billion worth of 182-day Treasury bills was opened for subscription at the primary market auction. The mid tenor investment securities attracted N227.94 billion subscriptions, while allotment was N87.049 billion. The spot rate was slashed to 16.19% from 16.42%, marking the second consecutive downward adjustment.
Nigerian Treasury bill with 364 days to maturity, worth N549.5 billion, was allocated to investors at the midweek auction, against N500 billion put on the table for subscription.
Reflecting a strong appetite for the naira asset, investors’ total subscription for one-year amounted to N2,632.745 billion, according to auction results. The spot rate for 1-Year Nigerian Treasury bill dropped to 16.199%, from 16.43% at the previous auction.
In the secondary market, Treasury bill trading activities remained largely quiet and stable as investor attention shifted to the primary auction.
At the close of the trading session, the average benchmark yield edged down marginally by 3bps to 16.11%. # CBN Slices Interest Rates on 182, 364-Day Treasury bills Nigerian Eurobonds Yield Falls Amidst $5bn Derivative Borrowing
