In January 2024, the Federal Government raised about N381.219 billion through treasury bills (NT-Bills) issued on January 10 and 24.
This represents a 67.8% decline from the N1.18 trillion raised in December 2023 raised through NT-Bills.
Details of the NT-Bills Auction
- On January 10, 2024, N149.4 billion was raised with the 91-day bills accounting for N2.78 billion, 182-day bills accounting for N94.33 billion, and the 364-day bills accounting for N52.29 billion.
- For the 91-day bills issued on January 10, the CBN offered N2.78 billion, however, the total subscription received was N38.87 billion with bids ranging between 2.44% and 9%. And only bids at 2.44% were successful.
- The 182-day and 364-day NT-bills were auctioned with respective yield rates of 4.22% and 8.399%. Bids for the 182-day bills varied between 4.22% and 16%. Bids for the 364-day bills ranged from 6.43% to 19.90%, with a total subscription of N10 trillion received.
- On January 24, 2024, N231.8 billion was raised with the 91-day bills accounting for N7.85 billion, the 182-day bills accounting for N6.44 billion, and the 365-day bills accounting for N217.53 billion.
- For the 91-day bills issued on January 24, CBN offered about N7.85 billion, with a total subscription of N12.74 billion received. Bids ranged between 2.5% and 9%, with CBN setting the yield rate at 5%.
- CBN offered N6.44 billion of the 182-day bills, however, a subscription of N34.84 billion was received. The bids ranged between 4% and 14.33%, albeit the yield rate was set at 7.15%.
- CBN offered N217.53 billion for the 364-day bills. However, a subscription of N1.04 trillion was received with bids varying between 3.23% and 19.01%. However, the yield rate was set at 11.54%.
What you should know
It is quite conventional that yield rates on treasury bills mirror the direction of the Central Bank with regard to monetary policy rates.
However, with the CBN’s conservative stance on NT-bills yields, it remains to be seen what direction the MPC will take concerning monetary policy rates.
