On Wednesday, June 26, 2024, the Central Bank of Nigeria (CBN) held its most recent Nigerian Treasury Bills (NTBs) auction, raising N284.26 billion from yield-hungry investors.
The Debt Management Office (DMO) released the auction results, and they show that there was a lot of investor interest in the sale.
The overall subscription amount was N773.98 billion, significantly more than the entire offer of N228.72 billion.
The CBN can regulate the amount of money in the economy by issuing or redeeming Treasury Bills (T-Bills) as a tool to carry out monetary policy.
READ ALSO: CBN finally permits IMTOs to sell FX directly on Nigeria’s official window
T-Bills additionally give the government a way to raise short-term capital to support its operations, including covering budget deficits.
In the latest auction, there was an increase of 417.1% in the amount offered when compared to the N44.23 billion offered in the previous auction, which was held on June 13, 2024.
Also, total subscriptions recorded 89.8% increase from N407.76 billion while total sales rose by 414.7% from N55.23 billion.
The latest auction saw a significant subscription rate, surpassing the offer amount across all tenors, indicating robust demand from investors.
The auction featured three tenors: 91-day, 182-day, and 364-day bills.
READ ALSO: Naira Redesign: Ex-CBN Director Reveals How Emefiele Ignored Design Approved By Buhari
The 91-day tenor, maturing on September 25, 2024, had an offer of N29.83 billion but received subscriptions worth N36.29 billion, with an allotment of N28.15 billion. The range of bids for this tenor was between 15.98% and 24.00%, with a stop rate of 16.30%.
The 182-day bills, maturing on December 25, 2024, saw an offer of N30.67 billion against subscriptions of N40.58 billion, and an allotment of N36.44 billion. The bid range was between 17.00% and 21.00%, with a stop rate of 17.44%.
The 364-day bills, maturing on June 25, 2025, had the highest offer at N168.21 billion. It recorded an overwhelming subscription of N697.11 billion and an allotment of N219.67 billion. The bid range for this tenor was 16.00% to 25.00%, with a stop rate of 20.68%.
