Interest rate on Treasury Bills drops, subscriptions more than double – Newstrends
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Interest rate on Treasury Bills drops, subscriptions more than double

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Interest rate on Treasury Bills drops, subscriptions more than double

The Central Bank of Nigeria (CBN) has recorded a significant influx of demand in the latest Nigerian Treasury Bills (NTB) auction conducted on September 11, 2024, with total subscriptions reaching N563.17 billion across the three tenors.

This marks a notable appetite for risk-free assets, even as the offered amount stood at N161.88 billion, revealing an oversubscription rate of 248% across the tenors.

However, in comparison to the previous auction on September 4, 2024, where N1.13 trillion was subscribed, the current auction shows a 50.14% decrease in total subscriptions.

On the allotment side, the total amount of N161.88 billion allotted in this auction reflects a 30.59% reduction compared to the N233.31 billion allotted in the prior auction.

Breakdown of the Bids

Despite this dip, the appetite for Treasury Bills (T-Bills) remains robust, particularly in the 364-day tenor.

  • 91-Day Tenor: The CBN offered N6.78 billion for the 91-day bills, but investor demand far exceeded expectations, with a subscription of N17.80 billion, marking an oversubscription of 162.51%. The CBN eventually allotted N10.84 billion, which is a 37.5% increase from the offer size. However, this was still lower than the allotment in the last auction.

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  • 182-Day Tenor: The 182-day bills, offered at N4.92 billion, received a subscription of N6.16 billion, reflecting an oversubscription of 25.2%. The final allotment was N2.52 billion, representing a 48.8% decrease in the amount offered.
  • 364-Day Tenor: As is typical, the 364-day bills drew the most significant interest, with an offer size of N150.18 billion. The tenor saw a massive subscription of N539.21 billion, nearly 359% above the offer size. The CBN allotted N148.52 billion, indicating a 1.1% decrease in the amount offered. Despite the large demand, the allotment remained close to the initial offer size.

Breakdown of the Rates 

The bid rates reflected the competitive environment for the three tenors. Investors submitted bid rates ranging between 15.00% to 21.00% for the 91-day bills, 15.55% to 19.10% for the 182-day bills, and 17.00% to 24.00% for the 364-day bills. Despite the broad range of bid rates, the CBN remained selective with stop rates declining across all tenors in comparison to previous auctions.

  • 91-Day Bills: The stop rate for the 91-day bills dropped to 16.63%, down from 17.00% in the previous auction, marking a 0.37% decline.
  • 182-Day Bills: Similarly, the stop rate for the 182-day bills fell to 17.00%, down from 17.50%, reflecting a 0.50% decrease.
  • 364-Day Bills: The stop rate for the 364-day bills declined by 0.35% to 18.59%, compared to 18.94% in the previous auction.

The decline in stop rates is indicative of the CBN’s effort to control the overall yield curve, despite strong investor demand.

Investors remained attracted to the Treasury Bills due to their relatively high true yields, especially in light of persistent inflationary pressures. The true yields for this auction were:

  • 17.36% for the 91-day tenor 
  • 18.59% for the 182-day tenor 
  • 22.84% for the 364-day tenor 

These returns, particularly for the 364-day bills, offer competitive compensation for investors seeking stable income in a volatile economic environment.

 

Interest rate on Treasury Bills drops, subscriptions more than double

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PH refinery: 200 trucks will load petroleum products daily, says Presidency

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6 hours ago

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November 26, 2024

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Port Harcourt Refinery

PH refinery: 200 trucks will load petroleum products daily, says Presidency

No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.

A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.

Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.

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Reacting, Dare said, “200 trucks are expected to load products daily from the refinery, Renewing the Hopes of Nigeria.”

He added that “the Port Harcourt refinery has two wings.

“The Old Refinery comes on stream today with an installed production capacity of 60, 000 barrels per day of crude oil.”

 

PH refinery: 200 trucks will load petroleum products daily, says Presidency

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Breaking: CBN increases interest rate to 27.50%

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November 26, 2024

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Breaking: CBN increases interest rate to 27.50%

 

The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.

This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.

The Monetary Policy Rate measures the benchmark interest rate.

The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.

He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.

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Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

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November 26, 2024

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Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

 

Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.

The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.

The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.

“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.

“The unemployment rate among males was 3.4% and 5.1% among females.

“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”

Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.

Employment rate – 76%

The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.

“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.

Self-employment – 85.6%

The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.

It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”

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