The Central Bank of Nigeria (CBN) on Wednesday ended the month of July with a total of N195.2 billion Treasury Bills auction to be allotted on Thursday in the financial market.
A breakdown of the auction shows that N28.02 billion was offered for 91 days tenor at the stop of 9.75 percent. Investors seeking for short term investment bided at a range bid rate of 9.35 and 10.75 percent. The offer was oversubscribed by N47.9 billion.
The CBN offered N58.68 billion to investors for 182 days tenor and the offer recorded N72.23 billion over subscription but a total of N33.68 billion, which is less than the initial offer, will be allotted on Thursday at a stop rate of 10.6 percent. The instrument recorded a range of bid rates of between 10.00 and 12.36 percent.
For the 364 day tenor, the CBN offered a total of N136.52 billion at a stop rate of 11.18 percent after investors bided at a range of between 10.5 and 13.2 percent. The offer was oversubscribed by N253.9 billion but less than the initial offer will be allotted on Thursday, which is N161.52 billion.
Ayodeji Ebo, managing director, Afrinvest Securities Limited explained that investors absorbed more than what the CBN offered.
HOPE MOSES-ASHIKE
