CBN Auctions N622bn Treasury Bills in One Week

Modupe Gbadeyanka

Treasury bills worth N622.2 billion were sold to investors last week by the Central Bank of Nigeria (CBN) via the primary and secondary markets, Cowry Asset has said.

For the primary market issues, stop rates for the 182-day and 364-day bills increased to 12.60 percent from 12.20 percent and 12.85 percent from 12.35 percent respectively and may be in line with recent signalling from the apex bank to maintain positive real returns on investments in order to attract investments to help finance a planned N1.6 trillion fiscal deficit.

However, the 91-day stop rate fell to 10.29 percent from 10.30 percent in line with expectations.

The outflows more than offset inflows worth N204.32 billion in matured bills; however, NIBOR fell for most tenor buckets.

Specifically, NIBOR for 1 month, 3 months and 6 months tenure buckets moderated to 11.41 percent from 20.20 percent, 12.66 percent from 12.92 percent and 14.69 percent from 15.14 percent respectively.

However, overnight funds rate increased to 15.65 percent from 11.40 percent.

Elsewhere, NITTY moved in mixed directions – yields on 3 months and 12 months maturities rose to 12.16 percent from 11.00 percent and 14.51 percent from 14.49 percent respectively.

However, 1 month and 6 months yields fell to 10.10 percent from 10.77 percent and 13.89 percent from 14.05 percent respectively.

In the new week, CBN will retire T-bills worth N33.02 billion, hence, the interbank interest rates are expected to remain stable on anticipated thin financial system liquidity.