The Central Bank of Nigeria (CBN) has sold an impressive N1.58 trillion in its latest Treasury Bills auction as the apex bank continues its ongoing effort to manage liquidity in the financial system.
The auction, held on the 21st of February, attracted substantial interest from investors, with the CBN setting stop rates as high as 19%.
The auction was broken down into three categories based on tenors: 91-day, 182-day, and 364-day bills.
The apex bank offered N11.96 trillion in 91-day bills, with a stop rate of 17.00%, which was a significant attraction for short-term investors.
The 182-day bills saw N10.21 trillion on offer at a 17.50% stop rate, while the 364-day bills had the highest rate at 19.00% on a N243.32 trillion offer.
Subscription levels were robust across all tenors, reflecting heightened investor appetite amidst the current economic landscape.
Bids ranged from 11.4400% to 21.0000% for the 91-day bills, 13.0000% to 20.3399% for the 182-day bills, and 15.0000% to 26.0000% for the 364-day bills.
These ranges show the variability of investor expectations regarding yield, with some investors willing to accept lower rates, while others aimed for the higher end of the spectrum.
This recent Treasury Bills auction mirrors the outcomes of the last auction where a total of N1 trillion was on offer but was oversubscribed as investors staked a whopping N2.3 trillion. The one-year bill also attracted a 19% interest rate.
The CBN’s moves are critical amidst the current global economic uncertainties, and their implications are sure to be a point of discussion in financial circles in the coming weeks.
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