The latest Treasury Bill (TBI) auction held on Wednesday raised N284.26 billion from the Federal Government from investors hungry for returns.
The Debt Management Office (DMO) announced the auction results on Thursday.
The auction attracted significant investor interest with total subscription of N773.98 billion exceeding the total bid of N228.72 billion.
As an instrument for implementing monetary policy, the Central Bank of Nigeria (CBN) can control the money supply in the economy by issuing or redeeming National Treasury Notes (SPN).
Additionally, T-Bills provide a means for the government to raise short-term funds to finance its operations, including bridging budget deficits.
In the latest auction, there was a 417.1% increase in the amount offered when compared to the N44.23 billion offered in the previous auction held on June 13.
Additionally, total subscriptions recorded an increase of 89.8% from N407.76 billion while total sales rose by 414.7% from N55.23 billion.
The latest auction showed significant subscription levels and exceeded the number of bids across all tenors.
The auction features three tenors: 91-day, 182-day, and 364-day notes.
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The 91-day tenor expiring on September 25 had a bid of N29.83 billion but received subscriptions worth N36.29 billion, with an allocation of N28.15 billion.
The tenor offer range is between 15.98% to 24.00%, with a stop rate of 16.30%.
The 182-day bonds maturing on December 25 offered a bid of N30.67 billion against an offer of N40.58 billion and an allocation of N36.44 billion.
The offer range is between 17.00% and 21.00%, with a stop rate of 17.44%.
The 364-day note maturing on June 25, 2025 had the highest bid of N168.21 billion.
It recorded a huge subscription of N697.11 billion and an allotment of N219.67 billion.
The offer range for this tenor is 16.00% to 25.00%, with a stop rate of 20.68%.
By: Babajide Okeowo
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