The Central Bank of Nigeria (CBN) has increased the discount rate on 364-day Nigerian Treasury bills by 83 basis points to 16.73% at its main auction held on Wednesday, signalling tighter liquidity conditions in the domestic fixed-income market.
At the midweek Treasury bills auction, the CBN offered a total of N1.05 trillion across the standard maturities. This comprised N100 billion in 91-day bills, N150 billion in 182-day bills and N800 billion in one-year instruments.
Total subscription stood at N2.344 trillion, according to auction results reviewed by MarketForces Africa, reflecting robust investor appetite for short-term government securities. In response to the oversubscription, the apex bank allotted N1.011 trillion worth of Treasury bills and adjusted rates on the 91-day and 364-day instruments.
A breakdown of the allotment shows that investors received N64.27 billion in 91-day Treasury bills, below both the N80.923 billion subscribed and the N100 billion initially offered.
For the 182-day tenor, the CBN allotted N91.43 billion, compared with total demand of N136.539 billion against an offer size of N150 billion.
Demand was strongest for the 364-day bills, where subscriptions reached N2.128 trillion. The CBN allotted N856.03 billion, exceeding the N800 billion offered for the one-year paper.
The spot rate on the 91-day bills rose by 15 basis points to 15.95% at the auction. Meanwhile, the 364-day instrument cleared at 19.73%, up from 15.90% at the previous auction.
The 182-day Treasury bill was priced at 16.65%, unchanged from the rate at the prior auction.
The latest adjustment in Nigerian Treasury bill rates underscores sustained demand for government securities, even as yields trend higher in the domestic money market.
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