The Central Bank of Nigeria has sold one-year Treasury Bills at a stop rate of 22.1% in a recent auction held on July 24, 2024.
This step underscores the central bank’s ongoing strategy to manage liquidity and curb inflation within the economy.
The CBN offered a total of ₦277.96 billion across various tenors in this auction. This represents a significant increase of 21.53% from the ₦229.72 billion offered in the previous auction on June 26, 2024. The total subscription amounted to ₦373.95 billion, surpassing the amount offered and indicating strong investor interest in government securities. However, this was a notable decrease of 51.68% compared to the ₦774.98 billion in total subscriptions recorded in the auction held the previous month.
The total allotment for this auction was ₦277.96 billion, marking a slight decline of 2.22% from the ₦284.26 billion allotted in June. This figure aligns closely with the amount offered in the latest auction.
The high subscription rates, especially for the 364-day bills, suggest a strong investor preference for long-term securities, possibly driven by expectations of economic stability and favorable returns. The competitive bidding observed across various tenors highlights keen interest from investors in securing these government securities.
