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The Central Bank of Nigeria (CBN) successfully raised over N627 billion through an oversubscribed Treasury bills auction on Wednesday. The primary market auction aimed to absorb excess liquidity from the financial market, amid rising demand from investors.
According to the auction results, spot rates increased across short, mid, and long tenors, as the CBN adjusted rates to influence demand in a market characterized by tight liquidity conditions.
Conducted on behalf of the CBN by the Debt Management Office (DMO), the auction drew strong investor interest, with total bids reaching N669.93 billion across the 91-day, 182-day, and 364-day Treasury bills offered. The results indicated a clear preference for the 364-day tenor, with approximately 97% of the subscription going towards this longer maturity.
In total, the DMO allotted N626.33 billion, surpassing the initial N513.43 billion on offer by 22%. The bid-to-cover ratio stood at 1.30x, slightly below the previous auction’s 1.31x, but still reflecting robust investor participation.
The auction saw a notable rise in stop rates across all tenors. Spot rates on the 91-day and 182-day T-bills increased by 100 basis points each, moving from 17% and 17.5% in the prior auction. The 364-day T-bill rate rose significantly by 235 basis points, reaching 19.864%.
Local investors maintained strong interest in the 364-day bills, which accounted for 97% of the total allotment, underscoring the continued demand for longer-dated investments at attractive yields.
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