The auction result report of the Central Bank of Nigeria (CBN) has shown that the CBN successfully held an auction of Nigerian Treasury Bills (NTBs) on March 27, 2024, during which a sizeable sum of N1.64 trillion was sold.
Investor interest has been piqued by the higher stop rates being given, which is indicative of trust in the country’s economic instruments.
Three types of NTBs with different tenors of 91 days, 182 days, and 364 days were offered during this most recent auction. The allocation date was March 28, 2024, one day after the auction date of March 27, 2024.
91-Day Bills – Moderate Demand
The shortest tenor bills, the 91-Day NTBs, offered an amount of N17.606 billion, attracting a subscription of N76.812 billion, indicating a moderate demand level. The bills have been set to mature on June 27 27, 2024. The range of bids for this category was fairly tight, ranging from 15.0000% to 22.0000%, showing a cautious investor approach. The stop rate for these bills was set at a competitive 16.2400%.
Read Also: Equity: Naira Appreciates To N1,350/$ In Parallel Market
182-Day Bills – High Demand Indicative of Market Optimism
The 182-day NTBs showed higher demand, with an offered amount of N1.560 billion and a hefty subscription of N58.184 billion. Maturing on September 26, 2024, these medium-term bills saw a bid range from 16.0000% to 22.0000%, signalling robust market optimism. As interest in mid-term investment vehicles increased, a final stop rate of 17.0000% was determined.
364-Day Bills – Record Subscriptions Reflect Investor Confidence
The longest tenor, the 364-Day bills, had a remarkable turnout. With an offer of N142.162 billion, it garnered a staggering subscription of N2.483 trillion, indicating a significant surge in investor confidence. These bills will mature on March 27, 2025.
The range of bids for the 364-day tenor was broader, spanning from 16.2390% to 25.4900%, highlighting the diverse expectations of investors. A stop rate of 21.5000% was eventually settled upon, reflecting the higher yield sought by long-term investors.
