The Central Bank of Nigeria (CBN) successfully conducted an auction of Nigerian Treasury Bills (NTBs) on March 27, 2024, which saw a substantial amount of N1.64 trillion being sold, as shown in the auction result report.
The higher stop rates offered have attracted considerable investor interest, reflecting confidence in the nation’s economic instruments.
During this latest auction, three categories of NTBs were offered, with varying tenors of 91 days, 182 days, and 364 days. The auction date was on March 27, 2024, with the allotment date following a day after, on March 28, 2024.
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%.
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.
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.