Overnight Rate Drops to 11.33% as CBN Sells N119.9b T-Bills

By Dipo Olowookere

There was a drop in the overnight rate on Wednesday as the Central Bank of Nigeria (CBN) sold a total of N119.94 billion worth treasury bills at the primary market.

Business Post reports that the overnight rate, at the close of business yesterday, fell to 11.33 percent, while the open buy back (OBB) rate declined to 10.17 percent from 12.17 percent recorded the previous day.

This was as a result of the surplus liquidity in the system, currently estimated at N80 billion.

At the market on Wednesday, the apex bank sold a total of N6 billion of the 91-day bills, N6 billion of the 182-day bills, and N107.94 billion of the 364-day bills with rates clearing at 13 percent, 15.25 percent and 15.60 percent respectively.

It was observed that the treasury bills market remained active yesterday on the short-end of the curve, with yields declining by about 16 basis points average due to the surplus liquidity in the system.