CBN Lowers Rates on 91-day, 182-day T-Bills

By Modupe Gbadeyanka

Yesterday, the Central Bank of Nigeria (CBN) sold fresh treasury bills to investors via primary market auction (PMA).

During the exercise, the apex bank received subscriptions worth N403.90 billion from market players against the N128.24 billion worth of the instruments it offered and sold at the close of the auction.

However, Business Post observed that the 91-day and 182-day papers cleared at rates lower than their previous levels.

During the previous PMA, the 91-day bill cleared at 10.98 percent, the 182-day bill at 13.49 percent, and the 364-day bill at 14.40 percent.

However, during yesterday’s exercise, the 91-day bill rate was dropped to 10.95 percent, the 182-day bill rate was reduced to 13.16 percent, while the 364-day bill rate was raised to 14.45 percent.

Of the N3.38 billion worth of the 3-month instrument, the CBN received subscriptions worth N3.68 billion, but sold the N3.38 billion it offered.

Also, of the N16.92 billion worth of the 6-month note, the apex bank got subscriptions worth N71.96 billion and sold the N16.92 billion it offered.

For the one-year paper, the central bank offered N107.94 billion, but received subscriptions worth N328.26 billion and sold what it offered.

At the secondary treasury bills market, it was relatively flat as a result of the PMA, with volumes traded much weaker than in the previous session.

With expectations of a possible OMO auction today, the yields are anticipated to remain slightly pressured as the instruments worth N423 billion mature.

Meanwhile, the Open Buy Back (OBB) and Overnight (OVN) rates remained relatively unchanged from their previous levels, closing at 5.75 percent and 6.42 percent.

This was as system liquidity remained moderately robust at N313 billion positive, with rates expected to remain moderated today, with inflows from OMO maturities anticipated to further bolster system liquidity.