Result from Aug 29 T-Bills Primary Market Auction   
Aug 30 (Lagos) - Below are the results from Nigerian Treasury Bills Primary Market Auction held yesterday. The yields are climbing again on the one year bill and this is a sign of worry for the stock market because so much money will pour into t-bills as is clear from the subscription amount of the 1 year bond. 


The Stock market has been receiving a pounding since the rally at the beginning of the year collapsed. This is a clear sign on more pain ahead as investors are likely to go for the risk free 13% yield which is still available in T-Bills. 


The CBN can reduce the benchmark lending rate which is at 14%. If they make that move, it could devastate the Naira exchange rate which is still at 361 to 1 Dollar. Last time they tried that move was in November 2015 when Naira was 200 to 1 Dollar, the result led to annihilation of the Naira exchange rate and the economy of the country not to mention buying power of the consumers. Middle class which was emerging till 2014 was dealt a heavy blow with their "trial and error" policies. 


It is sad that these issues are not talked about when these leaders come for re-election. Lack of education among masses and high poverty levels mean most people do not even understand how these things affect them. 


Let me not get into that discussion, below are the results from the Primary market Auction. 

Auction  Date

29/08/2018

29/08/2018

29/08/2018

Allotment / Issue  Date

30/08/2018

30/08/2018

30/08/2018

Tenor

(91-Day)

(182-Day)

(364-Day)

Offer Amount  (=N=)

24,960,588,000.00

44,993,786,000.00

137,000,000,000.00

Total Subscription (=N=)

22,727,507,000

38,751,846,000 

146,071,766,000 





Allotment (=N=)

22,727,507,000

38,751,846,000 

145,475,021,000 

Range of Bid Rates (%):

9.9000 – 11.0000

10.0000 – 12.3000

10.7500 – 18.4000

Stop Rates (%):

11.0000 

12.3000 

 13.0456

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