Treasury bills fetch Nigerian govt N284.2bn from yield-hungry investors

The latest Nigerian Treasury Bills (NTBs) auction carried out on Wednesday fetched the Federal Government N284.26 billion from yield-hungry investors.

The Debt Management Office (DMO) announced the result if the auction on Thursday.

The auction attracted significant investor interest with the total subscription totalling N773.98 billion which surpassed the total offer of N228.72 billion.

As an instrument to implement monetary policy, the Central Bank of Nigeria (CBN) can control the money supply in the economy by issuing or redeeming Treasury Bills (T-Bills).

Also, T-Bills provide a means for the government to raise short-term funds to finance its operations, including bridging budget deficits.

In the latest auction, there was an increase of 417.1% in the amount offered when compared to the N44.23 billion offered in the previous auction held on June 13.

Also, total subscriptions recorded an 89.8% increase from N407.76 billion while total sales rose by 414.7% from N55.23 billion.

The latest auction saw a significant subscription rate and surpassed the offer amount across all tenors.

The auction featured three tenors: 91-day, 182-day, and 364-day bills.

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The 91-day tenor which will mature on September 25 had an offer of N29.83 billion but received subscriptions worth N36.29 billion, with an allotment of N28.15 billion.

The range of bids for this tenor was between 15.98% and 24.00%, with a stop rate of 16.30%.

The 182-day bills maturing on December 25 saw an offer of N30.67 billion against subscriptions of N40.58 billion and an allotment of N36.44 billion.

The bid range was between 17.00% and 21.00%, with a stop rate of 17.44%.

The 364-day bills maturing on June 25, 2025, had the highest offer at N168.21 billion.

It recorded an overwhelming subscription of N697.11 billion and an allotment of N219.67 billion.

The bid range for this tenor was 16.00% to 25.00%, with a stop rate of 20.68%.

By: Babajide Okeowo

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