The Central Bank of Nigeria (CBN) has announced the results of its recent treasury bills (T-Bills) auction held on April 24, 2024, showcasing a robust market response with significant subscriptions across various maturity periods, totaling approximately N362.45 billion. This outcome underscores the buoyant appetite for government securities among investors.
Detailing the breakdown of the auction results by maturity periods, the 91-day bills witnessed substantial interest, with the CBN offering N7.85 billion and receiving subscriptions reaching N18.70 billion. Successful bidders were allotted N16.48 billion, with bid rates ranging from 15.000% to 18.500%, and a finalized stop rate of 16.240%.
Similarly, the 182-day bills demonstrated consistent demand, as the CBN offered N12.95 billion, attracting subscriptions totaling N13.48 billion. The allotment for this period amounted to N11.99 billion, with bid rates spanning from 15.000% to 21.000%, and a stop rate settling at 17.000%.
The most notable demand was observed for the 364-day bills, where an offer of N121.77 billion prompted subscriptions soaring to N725.66 billion. The total allotment for this long-term instrument reached N333.98 billion, with bid rates ranging from 19.000% to 25.760%, and a stop rate of 20.700%.
Market observers noted that the auction attracted a combined subscription of N757.84 billion, indicating robust market liquidity and investor confidence in the government’s fiscal instruments. The total allotment of N362.45 billion, surpassing the total offer of N142.57 billion, underscores the strong demand for Nigerian debt securities across all maturity periods.
Commenting on the auction results, financial analysts highlighted the distribution of stop rates across different maturity periods, which aligns with varying investor risk profiles and the monetary objectives of the CBN. It is emphasized that the CBN utilizes T-Bills as a tool to regulate financial system liquidity and address governmental funding requirements.
The successful outcome of the T-Bills auction reflects positively on Nigeria’s economic outlook, indicating a favorable investment climate and reinforcing confidence in the stability of the financial market.
Credit: Nairametrics (Text Excluding Headline)
