CBN Sells N223b OMO Bills to Refinance Maturing T-Bills

By Dipo Olowookere

Last week, treasury bills worth N226.68 billion were sold by the Central Bank of Nigeria (CBN) via the Open Market Operations (OMO) to refinace the matured T-bills worth N226.68 billion.

As a result, according to analysts at Cowry Asset, NIBOR for all tenor buckets rose on renewed liquidity strain: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets rose w-o-w to 3.59% (from 3.38%), 12.05% (from 11.31%), 14.00% (from 12.57%) and 15.84% (from 13.56%) respectively.

Elsewhere, NITTY rose for most maturities tracked on renewed sell pressure: yields on the 1 month, 3 months and 6 months maturities rose to 8.68% (from 8.16%), 10.92% (from 10.01%) and 11.55% (from 11.15%) respectively; however, yield on the 12 months maturity fell to 12.62% (from 12.90%) respectively.

Meanwhile, Standing Deposit Facility (SDF) worth N735.43 billion outweighed, Standing Lending Facility (SLF) worth N289.21 billion.

This week, T-bills worth N371.83 billion will mature via both the primary and secondary market while N626.8 billion that will be disburbed by Federation Account allocation Committee (FAAC) should boost liquidity; hence, we expect ease in financial system liquidity with accompanying moderation in interbank rate.

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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