The CBN, who offered to auction N2.05trillion 91-Day, 81-Day, and 364-Day tenor NTBs, according to its “government securities” in the period under review, eventually raised N2.98 trillion as investors’ demand for its long-term NTBs spike over lucrative yield.
Specifically, the 364-Day tenor NTBs recorded a total subscription of N4.86trillion as against the N1.9trillion total offer by the CBN, which gave the room for a final allotment of N2.71trillion in seven months of 2022.A further breakdown revealed that investors auctioned 91-Day NTBs with a total offer of N59.06billion of which N66.03billion was the final allotment after recording N121.89billion oversubscription, while the 180-Day NTBs that comes with N87.
However, THISDAY gathered that investors in 48 auctions NTBs auctions by CBN this year witnessed a total subscription of N5.19trillion, a 39.47 per cent oversubscription when compared to N2.05trillion it offered to raise in seven months. As the interest rate on 91-Day NTB opened this year at 2.5 per cent as of January 12, 2022 to 2.8 per cent as of July 27,2022, interest rate on 364-Day NTBs rose to 7 per cent as of July 27, 2022 from 5.5 per cent as of January 12, 2022.