Investors showed overwhelming interest in Nigeria’s one year Treasury Bill at the Central Bank of Nigeria’s latest auction, submitting N3.38 trillion in bids against an offer of N500 billion.
The July 29 auction recorded total subscriptions of about N3.62 trillion across the three maturities, while the CBN allotted roughly N1.25 trillion.
The News Chronicle reports that the 364-day bill attracted 6.76 times its advertised amount, reflecting strong institutional demand for longer-dated government securities.
The CBN allotted N1.02 trillion on the one-year bill, more than double the amount initially offered. Its stop rate fell to 17.35 percent from 17.66 percent at the previous auction.
Furthermore, the 91-day bill gathered N135.74 billion and the 182-day instrument attracted N104.74 billion during the auction. The yields on these bills were kept at 16.30 percent and 16.5 percent respectively.
The high subscription rate indicates that investors are optimistic about sustained liquidity in the system and willing to take lower yields for longer dated securities.
The auction formed part of the CBN’s third quarter Treasury Bills programme targeting N5.8 trillion in gross issuance.
