Investors Stake N292.6bn On N45bn Treasury Bills Auction
Despite a consistent crash of interest rates, investors staked N292.6bn on the N45bn treasury bills auction, which took place on Wednesday.
The auction results showed that the oversubscription rate stood at 550 per cent.
The Central Bank of Nigeria offered N5bn, N10bn and N30bn across the 91-day, 182-day and 364-day tenors, respectively.
A total subscription of N53.86bn was recorded on the 91-day tenor, with investors bidding between five and 7.5 per cent.
On the 182-day tenor, a total subscription of N46.28bn was recorded, with investors bidding between five and 8.5 per cent.
Investors offered N192.43bn on the 364-day tenor, bidding between 6.4 per cent and 13.4 per cent.
The CBN on Thursday allotted only N1.8bn from the N53.86bn subscription recorded at an interest rate of five per cent.
A total allotment of N4.5bn was made out of the N46.28bn subscription recorded on the 182-day tenor at an interest rate of 6.19 per cent.
On the 364-day tenor, the CBN allotted at 6.88 per cent N38.7bn from the N192.43bn subscription recorded.
An analysis of the current stop rates (or interest rates) of the 91-day, 182-day and 364-day tenor showed that they all declined by 1.4 per cent, 1.01 per cent and 2.49 per cent, respectively.