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.
| Table 1 |
Summary of Auction Result |
| Auction Date |
07-Feb-2024 |
07-Feb-2024 |
07-Feb-2024 |
| Allotment Date |
08-Feb-2024 |
08-Feb-2024 |
08-Feb-2024 |
| Maturity Date |
09-May-2024 |
08-Aug-2024 |
06-Feb-2025 |
| Tenor |
91-Day |
182-Day |
364-Day |
| Offer (N) |
200,000,000,000 |
200,000,000,000 |
600,000,000,000 |
| Subscription (N) |
39,902,076,000 |
76,834,833,000 |
1,866,200,863,000 |
| Allotment(N) |
39,902,076,000 |
51,348,833,000 |
908,749,091,000 |
| Range of Bids (%): |
7.0000 – 17.2400 |
4.0000 – 19.9800 |
13.0000 – 29.9400 |
| Stop Rate (%): |
17.2400 |
18.0000 |
19.0000 |
