Investors bid N808 billion worth of one-year treasury bills in the latest auction of 9th August 2023 at a rate of 9.8% per annum.
However, only N148 billion was allotted as investors continue to over-subscribe to the short-term risk-free investment.
The data was obtained from the latest auction report for Nigeria’s treasury bills sold during the week which sees the one-year bill mature on 8th August 2024.
Rising Inflation
Nigeria’s inflation rate rose to 22.79% in June 2023, representing a 0.38% points increase from 22.41% recorded in the previous month.
On a year-on-year basis, the Headline inflation rate was 4.19% points higher compared to the rate recorded in June 2022, which was 18.60%.
This means there continues to be a growing demand for risk-free investments despite offering a negative real return of -13%.
What You Should Know
Investors also staked N14.8 billion for the 182-day bill, however, the apex bank was only able to allot N1.3 billion suggesting a more than 10x oversubscription rate. Investors accepted an interest rate or stop rate of 5.9% for the 182-day bill.
For the 91-day bill, investors bid N13.8 billion as against the N4.5 billion offered by the central bank. The interest rate was at 5%.
The maturity date for the auction is 9th November 2023 for the 91-Day bill, 8th February 2024 for the 182-Day bill, and 8th August 2024 for the 364-Day bill.
This Nation called Nigerua,will surely,surely survive by the special grace of master Jesus christ of Nazareth ANEN.NIGERIA WILL BE GREAT,HAPPY AND BLESSED.
YOU WILL KNOW MEGA PEACE OF GOD, AND GOD’S DIVINE GLORY AND HONOUR WILLBE HER PORTION IN
JESUS MIGHTY NAME AMEN. SHALOM PEACE.STAY BLESSED NIGERIA.TREASURY BILLS BE BLESSED TO BLESS US INVESTORS.
INCREASE RETURNS IN THE NEXT
QUARTER IJMN AMEN REMEMBER
ME OH LORD AMEN