CBN Cuts Rates on 91, 364-Day Nigerian Treasury Bills
The Central Bank of Nigeria (CBN) has again cut rates on Nigerian Treasury bills (NTB) with 91-and 364-day maturities at the midweek primary market auction.
Amidst widening real interest rate on the naira curve, the monetary authority kept the discount rate on 182-day bills unchanged, having recorded the weakest subscription.
The market welcomed the CBN’s N1.15 trillion Treasury bills offer across the standard tenors. The CBN offered N150 billion worth of 91 days bill, N200 billion offer was put on the table for investors with interest in the mid-tenor.
The authority floated N800 billion worth of Nigerian Treasury bills, driven by the expectation of significant subscription. Auction results revealed that total subscription printed at about N4.274 trillion, more than 95% of the amount was for one-year treasury bills.
Investors staked N105.05 billion against N150 billion offer for 91 days, and 182-day bills attracted N93.75 billion subscription.
Investors chased N800 billion offer size for 364-day bills with about N4.075 trillion, reflecting sustained demand for duration at the main auction. The bills that were oversubscribed afforded the CBN an opportunity to reduce their spot rates.
The auction results revealed that the CBN slashed the spot rate for 91-day bills to 15.80%, and 364-day paper was reduced to 15.90%. The discount rate on 182-day maturity was kept at 16.65%. #UBA Climbs to N2.1trn as Investors Bet on Earnings Outlook
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