Interest Rate on 1-Year Nigerian Treasury Bill Falls to 15.85%
The Central Bank of Nigeria (CBN) has reduced its spot rate on 364-day (1-year) Treasury bill to 15.85% on Wednesday, at the close of the oversubscribed primary market auction.
The Debt Management Office (DMO), on behalf of the CBN, auctioned Nigerian Treasury bills totalling N900 billion across standard tenors – the first in the Q4 sales plan.
At the auction, the authority offered N100 billion in 91-day Nigerian Treasury bills and N100 billion in 182-day bills. The auction results showed that investors received about N1.770 trillion in bids to take positions across the standard tenors.
Investors got N968.50 billion in treasury bills allocation at the auction.
Both 91- and 182-day Nigerian Treasury bills were undersubscribed and were under-allotted. Most subscriptions were requests for 364-day allotments from investors across profiles.
The authority reported that 91-day papers attracted N39.42 billion in subscriptions, while N38.55 billion was allotted at the spot rate of 15.50% – the same as the previous auction rate.
The auction results showed that 182-day Treasury bills recorded N46.87 billion in subscriptions, with total allotment for the belly-of-the-curve bills settling at N44.92 billion, attracting a 15.80% spot rate.
For the 364-day bill, investors parked more than N1.683 trillion in subscriptions, chasing a N700 billion offer size, reflecting sustained appetite for longer duration.
The CBN allotted N885 billion out of the total subscription attracted and cut the spot rate to 15.85% from 15.89%. #Interest Rate on 1-Year Nigerian Treasury Bill Falls to 15.85%.
Excess Liquidity in Banking System Keeps Money Market Rates Stable
