Treasury Bill Rates Fall After CBN Cuts Interest Rate To 23%

Treasury bill stop rates fell across all tenors at the latest primary market auction following the Central Bank of Nigeria's decision to reset its benchmark interest rate to 23 percent from 26.5 percent. The stop rates for the 91-day, 182-day, and 364-day Nigerian Treasury Bills contracted by 80 basis points, 70 basis points, and 73 basis points to 15.50 percent, 15.80 percent, and 15.89 percent respectively. Investors placed N4.23 trillion bids for the N600 billion offered by the Debt Management Office, representing a bid-to-offer ratio of 7.1 times, with N497.58 billion allotted at a bid-to-cover ratio of 8.5 times. Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, noted the implications for yields across the fixed income market.

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