CBN raises N626bn from T-Bills sales at higher rates

The Central Bank of Nigeria (CBN) raised a little more than N627 billion from its oversubscribed Treasury bills sales at the primary market auction conducted on Wednesday to mop up liquidity in the market. The auction results showed that spot rates increased across the short, mid and long tenor as the authority sought to influence demand on the back of a weak liquidity in the financial market. The primary market auction which Debt Management Office (CBN) conducted on behalf of the monetary authority was well received as investors staked N669.93 billion across standard maturities.
The CBN split the offer into 91 day Treasury bills, 182 day bills, and 364-day papers. Again, the auction results showed that investors showed preference for long dated bills. Analysts said 97% of the subscription was for the 364-day Treasury bills while general bid-to-cover came in at 1.30x, slightly lower than the previous auction’s 1.31x.
The DMO successfully allotted ₦626.33 billion, 22% higher than the N513.43 billion on offer.  Local investors bet large on 364-day Treasury bills, accounting for 97% of the total allotment. Stop rates rose across all tenors increased. The CBN price spot rates on 91- and 182-day papers higher by 100 basis points apiece from 17% and 17.5% at the previous auction.  Also, spot rate on one year treasury bills increased by 235 basis points, from 19.864%. #CBN Raises N626bn from T-Bills Sales at Higher Rates