Investors flood 364-Day Treasury Bills with N1.05 trillion amid marginal rate cut 

The auction, conducted by the Central Bank of Nigeria (CBN), recorded total subscriptions of N1.17 trillion across the 91-day, 182-day, and 364-day instruments, far surpassing the total offer of N500 billion.

Despite the strong demand, the CBN maintained a relatively tight stance on rates.

It left the stop rates for the 91-day and 182-day papers unchanged at 18.00% and 20.00%,respectively, while trimming the 364-day stop rate marginally by 7 basis points, from 19.63% to 19.56%.

This slight adjustment suggests the apex bank is trying to manage the government’s borrowing costs without dampening the investor appetite for fixed-income instruments.

The bulk of market participation focused on the 364-day bill, where investors staked over N1.05 trillion in bids for the long-tenured paper.

The consistently high demand for government securities, particularly in the 364-day space, shows no sign of abating, even with marginal rate reductions

With many expecting that rates may soften later in the year, the rush toward longer-tenured instruments like the 364-day bill could be seen as a strategic move to lock in high yields ahead of potential downward rate adjustments.