The Central Bank of Nigeria (CBN) slashes the interest rate on one year treasury bills paper allotted to investors by seven basis points, detail from its midweek primary market auction result has revealed.<\/p>\n\n\n\n
At the main auction on Wednesday, the CBN offered bills worth N500.0 billion across standard maturities: 91-day, 182-day, and 364-day maturities to investors for subscriptions.<\/p>\n\n\n\n
The monetary authority opened 91-day bills worth N50 billion, 182-day bills worth N100 billion, and 364-day bills totaling N350 billion for investors\u2019 subscription in competitive bids.<\/p>\n\n\n\n
Investors\u2019 appetite remained strong as total subscriptions settled at N1.17 trillion, exceeding N500 billion worth of Nigerian Treasury bills that was offered by the CBN.<\/p>\n\n\n\n
The CBN allotted N615.8 billion worth of Treasury bills across standard maturities to investors at the main auction. Preference was given to investors that bid for one year bills, accounting for about 82% of the total allotment.<\/p>\n\n\n\n
CBN offered N50 billion worth of Nigerian Treasury bills with 91 days to maturity; investors staked N72.56 billion, while N71.67 billion was allotted. Also, CBN opened N100 billion worth of Nigerian Treasury Bills with 182 days tenor for sales. Total subscriptions came to N46.84 billion, while N41.13 billion was allotted to investors.<\/p>\n\n\n\n
For one year bills, the CBN offered N350 billion. The 1-year bills recorded N1.052 trillion in total subscription, while the CBN only sold N503 billion to investors.<\/p>\n\n\n\n
Stop rates for 91-day and 182-day bills were unchanged at 18% and 18.50%, respectively. However, the CBN slashed the spot rate for 364-day bills by 7 basis points to 19.56% from 19.63%. #CBN Cuts Interest Rate on 1-Year Nigerian Treasury Bills\u00a0<\/p>\n\n\n\n