The Central Bank of Nigeria (CBN) conducted a successful treasury bills (T-Bills) auction on April 24, 2024, where about N362.45 billion was raised across various maturities. This outcome demonstrates the market’s appetite for government securities.
Auction breakdown by tenors
91-Day bills yield substantial interest:Â The CBN offered N7.85 billion in 91-day bills, receiving subscriptions up to N18.70 billion. The allotment for this tenor concluded at N16.48 billion, with bids that ranged from 15.000% to 18.500%, and the stop rate was finalized at 16.240%.
182-Day bills reflect consistent demand: An offer of N12.95 billion for the 182-day bills attracted subscriptions totaling N13.48 billion. The CBN allocated N11.99 billion to successful bidders. The range of bids for this category spanned from 15.000% to 21.000%, with the stop rate settling at 17.000%.
364-Day bills dominate auction: The 364-day bills saw the highest demand with an offer of N121.77 billion and a subscription surge to N725.66 billion. The total allotment reached N333.98 billion. The bids for this long-term instrument varied from 19.000% to 25.760%, with a stop rate of 20.700%.
Market response and CBN strategy
The auction attracted a combined subscription of N757.84 billion, signaling robust market liquidity and confidence in the government’s fiscal instruments. The total allotment of N362.45 billion, which is more than double the total offer of N142.57 billion, shows a strong demand for Nigerian debt across all tenors.
The spread of stop rates across the tenors aligns with varying investor risk profiles and the Central Bank’s monetary objectives. The CBN leverages T-Bills to regulate financial system liquidity and fund governmental needs.
