Nigeria’s treasury bills auction has seen a surge in investor interest, with total subscriptions reaching N3.22tn. The auction, conducted by the Debt Management Office on behalf of the Central Bank of Nigeria, took place on February 5, with allotments done the following day.
Investors showed a strong preference for long-tenured securities, particularly the 364-day instrument, which accounted for 98% of total bids. The one-year paper received N3.16tn in subscriptions, significantly higher than the N500bn on offer.
The total bid-to-cover ratio stood at 4.80 times, slightly higher than the previous auction’s 4.78 times. Stop rates for the 364-day bill declined sharply by 148 basis points to 20.32%.
In contrast, shorter-dated maturities saw weaker interest, with the 91-day bill receiving N42.37bn in subscriptions, below the N50bn on offer, and the 182-day bill attracting just N19.52bn in bids against an offer of N120bn.
The outcome of the auction highlights the CBN’s liquidity management strategy, as it continues to adjust interest rates to attract funds for government financing while mitigating inflationary pressures. A total of N670bn was allotted, with N619.36bn allocated to the 364-day bill, representing 92% of total allotments.
