Interest Rate on 1-Year Treasury Bill Falls, Demand Hits N3.22T
The discount rate on Nigerian Treasury bills fell as investors submitted bids worth N3.22 trillion at the primary market auction. At the auction, the Debt Management Office, DMO, on behalf of the Central Bank of Nigeria (CBN) offered ₦670 billion across standard maturities.
Auction results showed that the 91-day maturity, 182-tenor, and 364-day papers received a total subscription of ₦3.22 trillion. Again, investors showed preference for long-dated, with the 364-Treasury bills subscription accounting for 98% of total subscriptions.
The general bid-to-cover came in at 4.80x, according to analysts noted, slightly higher than the previous auction’s 4.78x, reflecting strong investor interest. The authority allotted to match but hacked rate on one year Treasury bills, which received the highest subscriptions.
Specifically, the DMO allotted ₦670 billion. Market reports revealed that 92% of the total demand was allocated for 364-day paper.
Stop rates for the 364-day paper declined by 148 bps to 20.32%, while rates for the 91-day and 182-day papers remained unchanged for the eighth consecutive auction, TrustBanc Financial Group Limited said in an investors note. Ministry Seeks $2 billion Fibre Optics Funding
