WATCH THE VIDEO HERE Nigeria’s latest treasury bills auction, conducted on February 19, 2025, attracted significant investor interest, with total subscriptions reaching N2.41 trillion across the three offered tenors. However, this represents a decline from the N3.22 trillion recorded in the previous auction held on February 5, 2025. Despite the lower demand, the Central Bank of Nigeria (CBN) increased allotments across the tenors, particularly for the 364-day bills, while stop rates edged lower. The decline in stop rates signals changing investor sentiment and a shift in yield expectations, which could have broader implications for the fixed-income market. One of the most notable outcomes of the latest auction was the decline in stop rates across all three tenors, suggesting that investors were willing to accept slightly lower yields. The decline in yields reflects increased competition among investors, particularly as market liquidity remained strong. It also suggests that investors anticipate a more stable interest rate environment, prompting them to lock in rates even at slightly lower levels. The notable oversubscription in the 364-day tenor indicates investors’ preference for higher yields amid economic uncertainties and the need to hedge against inflation. The high demand also signals the attractiveness of Nigerian debt instruments, bolstered by attractive stop rates that provide investors with viable returns compared to other asset classes.
Nigeria Treasury Bills attract N2.41 trillion in subscriptions amid declining rates in latest auction
