CBN Cuts Interest Rate on Nigerian Treasury Bills by 10bps

The spot interest rate on Nigerian Treasury bills with 364 days to maturity fell by 10 basis points, according to the Central Bank (CBN) auction results.

The Apex Bank opened ₦650 billion worth of Nigerian Treasury bills across the standard three tenors for investors’ subscription on Wednesday.

The first auction floated by the authority in November attracted significant interest from yield seeking investors amidst sustained demand for the naira asset.

The auction attracted ₦1.176 trillion in total subscriptions, with significant preference for one-year bills as investors sought to position themselves in long duration.

Out of the aggregate subscription recorded, investors staked N1.135.30 trillion on 364-day bills, and then the CBN cut its rate.

The authority allotted ₦546.24 billion worth of Nigerian Treasury bills at the auction with rates held steady except for one-year bills.

Stop rate settled at 15.00% (0 bps) for the 91-day paper, 15.50% (0 bps) for the 182-day, and 16.04% for the 364-day tenor, down from 16.14%.

The market anticipates trading activities in the secondary market to have mixed to bullish momentum following the lower stop rate on the 1-year paper, which may fuel demand for medium- to long-tenor bills. Oando Plc: Resilient Energy Group Faces Earnings Storm
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