LAGOS – Nigeria’s central bank raised N1.457 trillion at its latest treasury bills auction, aggressively hiking yields across all tenors despite receiving overwhelming investor subscriptions that more than doubled its initial target.
The Central Bank of Nigeria (CBN) capitalized on robust market liquidity, drawing N2.160 trillion in total bids against an initial N1.00 trillion offer size during Monday’s primary market auction.
Result of the Auction published by CBN showed yields on the benchmark 364-day paper jumped 20 basis points to clear at 16.35%, reflecting aggressive central bank efforts to mop up banking system liquidity and defend the volatile naira.
The 91-day and 182-day stop rates also increased, clearing at 16.05% and 16.19% respectively, as institutional investors successfully demanded higher premiums to lock in short-term capital.
Investor demand was heavily skewed toward long-dated debt, with the one-year paper attracting N1.946 trillion in subscriptions, representing roughly 90% of total market interest during the session.
The aggressive rate hikes signal a sharp reversal from May’s brief easing trend, re-aligning the CBN with a hawkish monetary stance to combat persistent domestic inflationary pressures.
The central bank’s monetary policy committee previously raised its benchmark interest rate to a record 26.5% to curb persistent inflation and stabilize the macroeconomic environment
