INVESTORS SHUN 182-DAY T-BILLS, FLOCK TO 364-DAY BILLS WITH N677 BILLION SUBSCRIPTIONS
In the latest Nigerian Treasury Bills (NTBs) auction on June 5, 2024, investors showed a strong preference for 364-day bills over 182-day bills. The auction raised N278.4 billion in total, highlighting distinct investor preferences.
Key Details:
- 364-Day Bills:
- Government Offer: N179.89 billion
- Subscriptions: N677.42 billion
- Allotment: N246.54 billion at a 20.67% stop rate
- Bid Range: 16.4% to 25.0%
- Insight: High interest due to expectations of stable or rising interest rates, with investors seeking higher long-term yields.
- 182-Day Bills:
- Government Offer: N26.82 billion
- Subscriptions: N15.02 billion
- Allotment: N12.27 billion at a 17.5% stop rate
- Bid Range: 16.5% to 25.0%
- Insight: Lower demand suggests investors are reluctant to commit to shorter-term investments with lower returns.
- 91-Day Bills:
- Government Offer: N14.42 billion
- Subscriptions: N21.44 billion
- Allotment: N19.61 billion at a 16.5% stop rate
- Bid Range: 15.25% to 18.00%
- Insight: Steady interest reflects a segment of investors prioritizing liquidity and shorter investment horizons.
Overall Market Sentiment:
- Investors are favoring longer-term, higher-yield instruments in anticipation of stable or increasing interest rates.
- The significant interest in 364-day bills suggests confidence in the government's fiscal policies and economic stability.
- The lower demand for 182-day bills indicates a preference for investments with better returns over longer durations.
The subscription rate for the 364-day bill was lower compared to the previous auction's N1.43 trillion subscriptions, indicating some shift in market dynamics.
In the latest Nigerian Treasury Bills (NTBs) auction on June 5, 2024, investors showed a strong preference for 364-day bills over 182-day bills. The auction raised N278.4 billion in total, highlighting distinct investor preferences.
Key Details:
- 364-Day Bills:
- Government Offer: N179.89 billion
- Subscriptions: N677.42 billion
- Allotment: N246.54 billion at a 20.67% stop rate
- Bid Range: 16.4% to 25.0%
- Insight: High interest due to expectations of stable or rising interest rates, with investors seeking higher long-term yields.
- 182-Day Bills:
- Government Offer: N26.82 billion
- Subscriptions: N15.02 billion
- Allotment: N12.27 billion at a 17.5% stop rate
- Bid Range: 16.5% to 25.0%
- Insight: Lower demand suggests investors are reluctant to commit to shorter-term investments with lower returns.
- 91-Day Bills:
- Government Offer: N14.42 billion
- Subscriptions: N21.44 billion
- Allotment: N19.61 billion at a 16.5% stop rate
- Bid Range: 15.25% to 18.00%
- Insight: Steady interest reflects a segment of investors prioritizing liquidity and shorter investment horizons.
Overall Market Sentiment:
- Investors are favoring longer-term, higher-yield instruments in anticipation of stable or increasing interest rates.
- The significant interest in 364-day bills suggests confidence in the government's fiscal policies and economic stability.
- The lower demand for 182-day bills indicates a preference for investments with better returns over longer durations.
The subscription rate for the 364-day bill was lower compared to the previous auction's N1.43 trillion subscriptions, indicating some shift in market dynamics.
