Results from the Treasury Bills auction of 12 of April 2023 indicate investors bid as high as 19% for one-year treasury bills expected to mature on the 11th of April 2024.
Investors seeking the risk-free treasury bills made offers valued at N273.4 billion even though the amount on offer was N143.9 billion. The range of bids was between 10-19% but the central bank closed at a stop rate of 14.7%
The true yield for the one-year auction is as high as 17.3% by our estimates as treasury bills interest is typically paid upfront.
The 182-day treasury bill of N2.5 billion was on offer and the subscription was N3 trillion while the 91-day bill has an offer of N3.1 trillion and subscriptions valued at N3.7 trillion were made. The central bank also allotted N2.7 billion.
Treasury bills yield has been rising since the central bank started its rate hikes in response to the high inflation rate.
More to follow….