Rates on Nigerian Treasury Bills (T-Bills) have crashed to the lowest level in 3 years as big domestic investors who majorly pension fund managers and insurance companies piled into the country’s T-Bills auction conducted Wednesday following CBN’s OMO ban on domestic non-bank investors.
The primary market auction rates on the 91-day and 182-day bills compressed to 7.7998 percent and 9 percent respectively, the first time both the short and mid-dated instruments would record single-digit rates since June 15, 2016. Also, the rate on long-dated 364-day bill cleared at 10 percent.
The CBN’s auction was oversubscribed by more than four times as investors bid N555.98 billion across the three tenors on the N125.24 billion worth of NT-Bills offered.
Consequently, CBN sold bills worth N125.24 billion at N4.38 billion, N12.92 billion, and N107.94 billion on the 91-day, 182- Day, and 364-Day bills, respectively. This brought the total value of unsuccessful bids to N430.74 billion.
