Treasury Bills Primary Market Auction results showed the Central Bank of Nigeria (CBN) allotted N71.16 billion from N1.91 trillion in bids on Oct. 28, leaving most of its N800 billion offer unfilled.
The 364-day bill drew N1.84 trillion in bids against N600 billion offered, but the CBN allotted N38.38 billion. Its stop rate fell to 15.80% from 15.90%, with a true yield of 18.76%. Investment professional Ayodeji Ebo told BusinessDay the yield was below levels above 20% earlier in the year.
The CBN also lowered rates on shorter maturities. The 91-day stop rate declined to 15.40% from 15.50%, while the 182-day rate eased to 15.79% from 15.80%. Bids totaled N51.56 billion for 91-day bills and N20.27 billion for 182-day bills, each against N100 billion offered; allotments were N22.33 billion and N10.45 billion, respectively.
The offer comprised N600 billion in 364-day bills and N100 billion each in 91-day and 182-day bills. EconoTimes previously covered the Oct. 28 auction.
BusinessDay reported that bids at the prior auction on Oct. 14 totaled N1.03 trillion, with N269.06 billion allotted. Compared with that sale, bids rose at the Oct. 28 auction while allotments fell by about 74%, the outlet reported.
Meristem Securities reported an average secondary-market Treasury bill yield of 17.93%, down one basis point; yields fell on 31 instruments and were unchanged on seven. In its pre-auction assessment, Meristem had anticipated little movement in rates while allowing for modest increases among longer-dated bills.
BusinessDay said the lower stop rates reflected reduced marginal borrowing costs, while the small allotment meant the government raised much less than advertised. The outlet said subsequent auction results will show whether lower rates persist as government borrowing volumes rise.
