Again, Investors Snub 87-Day Bill at OMO Auction

By Modupe Gbadeyanka

For the second straight trading day, market players at the treasury bills market failed to buy the 87-day bill offered to them by the Central Bank of Nigeria (CBN).

The central bank conducted another sale of T-bills via the Open Market Operations (OMO) on Tuesday.

However, out of the total N350 billion worth of the bills offered for sale today, the apex bank was only able to rake N191 billion from the exercise.

The amount was made from the sale of the N250 billion worth 254-day bill auctioned by the nation’s chief lender.

The bill was sold at the stop rate of 14.40 percent, same rate the 248-day bill cleared yesterday at the market.

However, the CBN posted a no-sale notice for the 87-day instrument despite offering N100 billion worth of the bill for sale.

Business Post reports that investors are already gearing up for the second primary auction market (PMA) of the year tomorrow.

Meanwhile, the overnight and open buy back (OBB) rates depreciated by 100 basis points on Tuesday.

Specifically, the overnight rate went down to 5.58 percent today from 6.58 percent yesterday, while the OBB rate crashed to 4.83 percent from 5.83 percent.