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Money and Fixed Income

364-Day Treasury Bills Stop Rate Hits 19%

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treasury Bills

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

 

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