The CBN has conducted another auction of Treasury bills (NT-bills), with the yield on the 364-day bills dropping to 20.7 per cent, from the previous 21.124 per cent. The auction, held on Friday, saw the CBN successfully sell N951.83 billion worth of bills.
The CBN offered N149.64 billion of NT-bills during the auction, offering N2.78 billion of the 91-day bills, N3.02 billion of the 182-day bills, and N143.84 billion of the 364-day bills.
The CBN recorded an oversubscription of 1119 per cent, as the total subscription received during the auction was about N1.824 trillion against the N149.64 billion offered.
Even though there was an oversubscription, there was also a 42 per cent decline from the N1.64 trillion sold during the March 27 auction.
The successful auction of the NT-bill by the CBN, according to analysts, is a reflection of investors’ confidence in Nigeria’s NT-bills, despite the decreased yield rates deviating from the raised monetary policy rate.
For the 91-day bills, the total subscription received was N27.34 billion, representing an 883.45 per cent oversubscription from the N2.78 billion offered. The rates of the subscriptions ranged between 15.00 and 17.50 per cent.
The CBN sold N27.11 billion with the stop rate being at 16.24 per cent, the same stop rate of the March 27 auction.
The 182-day bills recorded an oversubscription of 802.3 per cent, with subscription hitting N27.27 billion. The bids ranged between 16.00% and 21.00 per cent, but the stop rate was put at 17.00 per cent, the same from the March 27 auction. CBN sold N22.67 billion of the 182-day bills.
The 364-day bills recorded an 1130% oversubscription, with subscription hitting N1.77 trillion, with bids ranging between 19.00 per cent and 25.00 per cent. However, with the stop rate set at 20.7 per cent, the successful bids were N902.03 billion.
