The Federal Government, through the Central Bank of Nigeria (CBN), has announced the results of its Treasury Bills auction conducted on March 5, 2025 and its Open Market Operations auction conducted on March 6, 2025, showing that it raised N2.51trn from investors.
The T-bill auction initially offered N650bn but attracted strong investor demand, with total subscriptions reaching N1.92tn, as most bids were directed at the 364-day instrument.
However, despite the surge in demand, the stop rate on the one-year bill dropped to 17.82 per cent, the lowest since September 2024.
The auction recorded strong participation across all maturities, with the 364-day bill accounting for 94 per cent of total subscriptions.
The 91-day bill, which had N70bn on offer, received N62.57bn in subscriptions, with N61.52bn allotted at a stop rate of 17 per cent.
The 182-day bill, with an offer size of N80bn, attracted N60.05bn in subscriptions, while N50.95bn was allotted at a stop rate of 17.75 per cent. The 364-day bill saw the highest demand, with N500bn on offer drawing N1.80tn in bids.
The government ultimately allotted N717.97bn, with the stop rate closing at 17.82 per cent, down from 18.50 per cent in February. In total, the government allotted N830.44bn, exceeding the initial N650bn offer, as investors took advantage of the high-yield environment.
The auction results highlight the continued liquidity in the fixed-income market, even as monetary authorities weigh the impact of balancing foreign capital inflows with sustainable borrowing costs.
The CBN also conducted an Open Market Operations auction on March 6, 2025, attracting N1.88tn in total subscriptions, more than three times the N600bn initially offered.
Despite the strong demand, stop rates on the 355-day and 362-day bills declined significantly, reflecting a shift in the fixed-income market as the apex bank moved to moderate yields.
The latest auction saw the stop rate for the 355-day bill drop to 19.19 per cent from 21.32 per cent, representing a 2.13 percentage point decline.
Similarly, the 362-day bill cleared at 19.45 per cent, down from 21.35 per cent, marking a 1.90 percentage point decline.
Both tenors recorded strong participation, with the CBN offering N300bn for each maturity but ultimately selling N1.68tn in total, as investor appetite remained robust.
The 355-day bill attracted N760.70bn in subscriptions, with an allotment of N725.70bn at a stop rate of 19.19 per cent.
The 362-day bill received even higher interest, with N1.12tn in bids, while the CBN allotted N951.20bn at a stop rate of 19.45 per cent.
The decline in stop rates comes amid continued efforts by the CBN to fine-tune liquidity management, balancing inflation control with investor confidence.
The strong demand for OMO bills suggests that investors remain eager to lock in high-yield, risk-free instruments, even as yields moderate.
Despite the lower rates, demand for OMO bills remains exceptionally high, particularly for the 362-day bill, which accounted for nearly 60 per cent of total subscriptions.
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