CBN Slashes Interest rates on 1year Treasury Bill by 42.4% bps to 20.7%

In the latest auction of Treasury bills on April 12, 2024, the Central Bank of Nigeria (CBN) successfully sold N951.83 billion worth of bills, representing a substantial 42% decline from the N1.64 trillion sold during the previous auction on March 27. The 364-day Treasury bill yield also experienced a notable drop, falling to 20.7% from the previous 21.124%.

The auction saw the CBN offer N149.64 billion of Treasury bills, which included 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.

Despite offering a relatively low amount, the CBN recorded an oversubscription rate of a staggering 1,119%, with total subscriptions amounting to N1.824 trillion against the N149.64 billion on offer.

For the 91-day bills, the total subscription received was N27.34 billion, representing an 883.45% oversubscription from the N2.78 billion offered. The rates of the subscriptions ranged between 15.00 and 17.50%.

The CBN sold N27.11 billion with the stop rate being at 16.24%, the same stop rate of the March 27 auction.

The 182-day bills recorded an oversubscription of 802.3%, with subscription hitting N27.27 billion. The bids ranged between 16.00% and 21.00%, but the stop rate was put at 17.00%, 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% and 25.00%. However, with the stop rate set at 20.7%, the successful bids were N902.03 billion.