Buyers Commit N2.41trn to Treasury Payments Public sale
Nigeria’s treasury payments public sale on February 19, 2025, attracted strong investor curiosity, with subscriptions totaling N2.41 trillion throughout the three accessible tenors.
Nonetheless, this marked a decline from the N3.22tn recorded within the earlier public sale held on February 5, 2025. That is in keeping with the public sale outcomes seen on Thursday.
The Central Financial institution of Nigeria (CBN) elevated allotments, significantly for the 364-day tenor, whereas cease charges edged decrease, signalling a shift in investor sentiment and yield expectations.
The public sale outcomes confirmed a marked improve in demand for shorter-term treasury payments, with the 91-day and 182-day devices witnessing important jumps in subscriptions in comparison with the previous public sale.
The 91-day payments, which had a suggestion dimension of N80bn, attracted N62.14bn in subscriptions, a rise from N42.37bn recorded within the February 5 public sale.
The CBN allotted N34.77bn, whereas the highest fee dropped to 17 per cent, decrease than the 18 per cent within the earlier public sale.
Equally, the 182-day payments, with a suggestion dimension of N120bn, noticed subscriptions rise to N49.88bn, up from N19.52bn.
The apex financial institution allotted N34.98bn at a cease fee of 18 per cent, barely decrease than the 18.5 per cent recorded within the final public sale.
Then again, demand for the 364-day payments, which have historically attracted the very best subscriptions, declined considerably.
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The tenor had a suggestion dimension of N500bn however recorded a drop in complete subscriptions to N2.3tn, down from N3.16tn recorded within the February 5 public sale.
Regardless of this decrease demand, the CBN elevated its allotment to N704.38bn, in comparison with N619.36bn within the earlier public sale.
The cease fee for the 364-day payments additionally fell, settling at 18.43 per cent, down from 20 per cent.
Bids for this tenor ranged from 16.5 per cent to 25 per cent, indicating sturdy competitors amongst institutional buyers searching for longer-term authorities securities.
The declining cease charges throughout all three tenors recommend that buyers are keen to just accept decrease yields, reflecting an adjustment in expectations.
The maturity dates for the profitable bids are Could 22, 2025 (91-day payments), August 21, 2025 (182-day payments), and February 19, 2026 (364-day payments), providing completely different durations for portfolio planning and liquidity administration.
The downward motion in cease charges aligns with traits within the fixed-income market, the place yields have been moderating amid secure liquidity circumstances.
The decrease yields could also be linked to the CBN’s liquidity administration efforts, as diminished treasury invoice charges assist the federal government decrease its borrowing prices whereas retaining liquidity ranges balanced throughout the monetary system.
Nonetheless, the declining cease charges additionally point out rising competitors for risk-free property, with buyers bidding aggressively to safe allocations regardless of the drop in yields.
Regardless of the dip in complete subscriptions, the sustained demand for Nigerian treasury payments underlines the attractiveness of presidency securities within the present financial surroundings.
