One-Year T-Bills Rate Clears at 12.88% at CBN’s N150bn OMO Auction
The Central Bank of Nigeria (CBN) on
Thursday auctioned for sale treasury bills worth N150 billion to
investors at the open market.
Business Post reports that the apex bank offered the debt instruments to traders in three maturities; 84-day, 175-day and 364-day bills.
A further breakdown showed that N20
billion worth of the three-month instrument was offered for sale, N30
billion worth of the six-month bill was auctioned, while N100 billion
worth of the one-year instrument was offered to traders at the market
subscriptions valued at N5.89 percent were received for the 84-day
bill, but the CBN declared no sale at the end of the exercise.
For the 175-day instrument, the central
bank got N3.73 billion worth of subscriptions, with N69 million allotted
at 11.80 percent, lower than the 11.84 percent in the previous
However, the 364-day bill was slightly
oversubscribed by traders by N6.27 billion, but the CBN sold only N87.97
billion, which cleared at 12.88 percent, higher 12.00 percent offered
in the last exercise.
the secondary market yesterday, yields increased by 0.38 percent on the
back of the slightly improved system liquidity level in the money
Meanwhile, rates in the money market
declined marginally by 2.07 percent as system liquidity was bolstered by
inflows from N123 billion OMO T-bill maturities and refunds by the CBN
for Unfilled Retail FX demand at the last auction.
the Open Buy Back (OBB) rate dropped to 11.71 percent from 13.86
percent, while the Overnight (OVN) rate went down to 12.64 percent from
“We expect rates to inch slightly higher
tomorrow, as banks fund for another retail FX auction by the CBN,”
analysts at Zedcrest Research said.