CBN Sells 364-day T-bills at 21.49% to Attracts FX Inflows
Kayode Tokede
The Central Bank of Nigeria (CBN) yesterday, sold a record N1.32 trillion Treasury Bills (T-Bills), with the yield on the 364-day T-Bill rising to 21.49 per cent as the apex bank mopped liquidity as well as attempts to lure foreign portfolio inflows.
The auction attracted massive interest from investors, with the CBN setting stop rates as high as 21.49per cent.
The auction was broken down into three categories based on tenors: 91-day, 181-day, and 364-day T-Bills auctions. The 364-day bills recorded the highest rate at 21.49 per cent on a N312.92 billion amount offered by CBN.
Investors subscription stood at N1.54 trillion and CBN eventually selling N1.29 trillion for the 364-day T-bills auction.
The auction results revealed that the range of bid for the 364-day stood at 17.0000-27.0000 per cent, as subscription levels for the 364-day T-Bills was robust, reflecting heightened investor appetite amidst the current economic landscape.
For the 182-day auction, the CBN offered N10.55 billion to investors and recorded N51.51 billion, but finally allotted N10.55 billion.
Finally, the apex bank offered N14.42 billion in 91-day T-Bills, with a stop rate of 17.24per cent and received a subscription and total sales of N66.63 billion. It allocated N14.42 billion, the amount it offered to investing public.
Bids ranged for the 91-day and 182-day T-Bills were at 15.9000-22.0000per cent and 14.0000-22.0000per cent, respectively.
The CBN early in March 2024, sold a record N1.056 trillion in OMO bills with the yield on the 361-day bill rising to 27.3 per cent.
The CBN governor, Olayemi Cardoso had promised investors higher rates as apex bank moves to fight inflation.
The stop rate on the one-year bill was 21.5 per cent compared to 17 per cent at the last auction. The stop rates on the 95-day and 179-day bills hit 19 and 19.5 per cent respectively.
The auction saw strong investor demand for the one -year OMO bills as it was oversubscribed to the tune of N1.01 trillion, three times more than the N355 billion that was offered.
