Nigeria’s recent Treasury bills auction has garnered a remarkable total subscription of N3.22 trillion.
The Debt Management Office, acting on behalf of the Central Bank of Nigeria, held the auction on February 5, with allotments taking place the following day, February 6.
According to the auction results released on Saturday, the Federal Government offered N670 billion across the standard maturities of 91-day, 182-day, and 364-day bills.
The auction demonstrated a strong demand for longer-term securities, with the 364-day bill representing 98 percent of total bids, overshadowing interest in shorter-term options. This trend indicates a growing investor appetite amid increasing yields and stringent monetary conditions.
Additionally, the stop rates for the 91-day and 182-day bills remained steady at 18 percent and 18.5 percent, respectively, marking the eighth consecutive time these rates have been unchanged.
Additional analysis revealed that the 91-day bill garnered N42.37 billion in subscriptions, falling short of the N50 billion available, while the 182-day bill experienced a notable deficit, attracting only N19.52 billion in bids compared to an offer of N120 billion.
According to DAILY POST, the reduced interest in shorter tenors indicates that investors are shifting their focus towards longer-term benefits, opting to secure higher yields in anticipation of further tightening in monetary policy.
It is worth noting that the central bank’s Monetary Policy Committee raised the interest rate by 25 basis points to 27.50 percent in November of last year.
