…Slashes Stop Rate To 16.84%
The Central Bank of Nigeria (CBN) at its Wednesday Nigerian Treasury Bills (NTBs) primary market auction allotted N865.71 billion to bidders, slashing the stop rate on the one-year bill to 16.84%, the lowest since the June 3 auction.
Data from the primary market auction showed that investors submitted a combined N3.35 trillion in bids against the N700 billion offered by the apex bank, which allotted N865.71 billion to the successful bidders
According to the trading data, the NTBs demand was heavily concentrated on the 364-day bill, as investors’ appetite for the short-tenored debt instruments remained weak.
- Advertisement -
Collectively, the auction attracted total subscriptions of approximately N3.35 trillion against the N700 billion offer, a bid-to-offer ratio of about 4.8 times while the apex bank ultimately allotted N865.71 billion, roughly N165.71 billion above the original offer size.
A further analysis of the subscriptions reflected that for the 91-day bill, N100 billion was offered, N76.82 billion was subscribed, representing 76.8% of the offer and N76.28 billion was allotted at stop rate at 16.30%.
Similarly, on the 182-day bill, N100 billion offered, N33.51 billion was subscribed, representing only 33.5% of the offer and N27.27 billion was allotted at stop rate of 16.50%.
However, on the 364-day NTB: N500 billion was offered by the apex bank, N3.238 trillion was subscribed, representing about 6.48 times the offer size, while N762.17 billion was allotted to the bidders, and the stop rate dropped by 31 basis points to 16.84% from 17.15% at the August 26 auction.
The scale of the NTBs demand reflected the 364-day bill accounted for approximately 96.7% of total subscriptions across all three tenors.
The maturity dates for the three tenors are December 3, 2026 (91-day), March 4, 2027 (182-day), and September 2, 2027 (364-day).
