DANGOTE CEMENT SETS DATE FOR LONDON INVESTOR BRIEFING

Investors submitted bids worth N3.35tn for Nigerian Treasury Bills at the latest Central Bank of Nigeria auction, showing strong demand for the government’s short-term securities.

The CBN had offered Treasury Bills worth N700bn but eventually allotted N865.71bn following the strong investor interest. The 364-day bill attracted the largest demand, receiving N3.238tn in subscriptions for the N500bn initially offered.

The one-year bill was sold at a stop rate of 16.84 per cent, down from 17.15 per cent at the previous auction on August 26. This represents a 75-basis-point decline over the last two auctions.

Demand for the shorter-term instruments was considerably lower. The 91-day bill attracted N76.82bn against N100bn offered, while the 182-day bill received N33.51bn.

The strong preference for the longer-dated security indicates continued investor interest in government-backed instruments despite the gradual decline in yields.

The latest auction also suggests that the CBN is increasingly accepting lower borrowing costs as demand for government securities remains strong.

Market participants will be watching the trend closely ahead of the September Monetary Policy Committee meeting, particularly for signs of changes in monetary conditions and interest rates.