364-Day Treasury Bills Stop Rate Hits 19%

The 364-day tenor treasury bill was oversubscribed as its stop rates spiked to 19% at the February 7th 2024 auction.

The CBN offered N600 billion of the 1-year bill while it recorded a whooping N1.8 trillion subscription as the CBN alloted N908.7 billion.

However, the 91-day and 182-day bills were undersubscribed as N200 billion each were offered, and subscriptions of N39.92 billion and N76.83 billion were recorded at 17.24% and 18% respectively.

At the close of the auction, the apex bank allotted N39.902 billion for the 91-Day bill, representing 100% of its subscription, while the 182-Day instrument received N51.348 billion allotment, representing 66.83% of the total N76.835 billion subscribed.

The under-subscription for short-dated instruments is instructive as investors are more inclined to the larger yields on longer-dated bills.