• Thursday, March 28, 2024
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BusinessDay

Oversubscribed treasury bills show rising investors interest

Nigeria’s 1yr T-Bill yields hit 25% after jumbo rate hike

The Central Bank of Nigeria (CBN) on Wednesday rolled over treasury bills maturities worth N220.52 billion at the primary market auction and the offers were oversubscribed, showing rising investors interest in government instruments.

This resulted in the decline of stop rates by 1.71, 2.53, and 2.52 basis points for 90-days, 182-days and 364-days tenors respectively.

The summary of the treasury bills auction on Wednesday show that N1.73 billion was offered for 90-day tenor at 0.29 percent stop rate, and was oversubscribed by N94.25 billion.

The CBN offered N1.26 billion for 182-day tenor at 1.8 percent stop rate. The bill, which matures on July 27, 2023 was oversubscribed by N89.61 billion.

For the 364-day instrument, a total of N217.53 billion was offered and allotted at 4.78 percent stop rate. The bill, which matures January 25, 2024 was oversubscribed by N860.35 billion.

Read also: Naira redesign: new era is now cashless says CBN

At the foreign exchange market, naira depreciated by 0.26 percent or (N2) against the dollar at the parallel market, popularly known as black market.

The dollar was quoted at N750 to close the trading on Wednesday, compared to N748 on the previous day. Traders attributed the naira weakness to increased demand for dollars.

At the Investors and Exporters (I&E) forex window, Naira appreciated by 0.06 percent as the dollar was quoted at N461.70 on Wednesday as against the last close of N462.00 on Tuesday, data from the FMDQ showed.

Most currency dealers who participated at the foreign exchange auction on Wednesday maintained bids between N440.00 (low) and N463.00 (high) per dollar.

The level of activities at the I&E window increased as the daily foreign exchange market turnover rose by 15.73 percent to $112.04 million on Tuesday from $96.81 million recorded on Friday last week.