Nigeria's Treasury Bills Oversubscribed
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More funds for Nigeria as the nations last treasury bills auction was sought for. This has been confirmed by the Central Bank of Nigeria (CBN) announcing an over subscription of 112.15 billion naira.
The CBN offered a total of 34.38billion naira
worth of T-bills across the 91-day, 182-day and 364-day tenors.
The 91-day tenor saw an oversubscription of
10.68 billion naira as it received a total subscription of 15.06 billion naira,
compared to the 4.38 billion naira offered.
The 182-day tenor saw an under-subscription
of N1.41bn as a total subscription of 8.59 billion naira was received,
compared to the 10 billion naira offered.
The 364-day tenor witnessed the highest
interests as it was oversubscribed by 102.88 billion naira.
Nigerian dealers raised their secondary-market
bids for one-year treasury bills to 14 per cent from 11 per cent last week.
The bid offer spread on the paper doubled
to 200 basis points as some investors had bid for bills at 16 per cent on
Friday, traders told Reuters.
Last week, the T-Bills market resumed its
bearish trend on Wednesday after the two-day Sallah break.
The sell-offs by offshore investors
persisted for the third consecutive week on the back of global growth
concerns. As a result, average yield across the curve trended further
northwards by 123 basis points week-on-week to settle at 13.9 per cent from
12.6 per cent the previous week.
The mid-tenor bills witnessed the highest
jump in yields, advancing by 170bps, while the short-term and long-term bills
increased by 135bps and 97bps, respectively.
On Wednesday, the apex bank rolled over a
total of N34.4bn across the 91-, 182- and 364-day tenors at the primary
market auction.
On Thursday, the CBN conducted an Open
Market Operation auction, offering a total of N150bn across the 85-day,
175-day and 364-day tenors.
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