CBN Sells N11.72b Bills as Overnight Rate Jumps to 39.42%

By Dipo Olowookere

It was bearish treasury bills market on Friday with some sell on the short end of the curve due to the liquidity squeeze in the market.

The Central Bank of Nigeria (CBN) on Friday auctioned N11.72 billion worth of 188-day bills via the open market operations (OMO).

Business Post reports that the bills were offered to traders by the apex bank at the market at the stop rate of 17.80 percent.

However, the central bank offered N50 billion worth of 97-day bills but no offers were received from investors.

Meanwhile, at the close of business yesterday, the open buy back (OBB) and the overnight rates broadly increased compared with the previous day.

For the overnight rate, it finished on Friday at 39.42 percent compared with 7 percent it ended on Thursday, while the open buy back (OBB) rate closed at 36.33 percent against 6.33 percent the previous day.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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