Dipo Olowookere
By Dipo Olowookere
The Central Bank of Nigeria (CBN) will approach the primary market on Wednesday, October 30, 2019 (today) to auction treasury bills worth N133 billion to retail and local institutional investors, who have been barred from participating in Open Market Operations (OMO) since last week.
Business Post expects the market to be flooded today as a result of this new development and due to the rush for the debt instrument, there are strong indications that the apex bank will moderate the stop rates.
From the NTB calendar of the CBN, the bills would be offered in three maturities; 91-day bill worth N28.02, 182-day bill worth N10.62 billion and 364-day bill worth N93.92 billion.
At the previous PMA, the central bank cleared stop rate for the 91-day bill at 10.80 percent, the 182-day bill at 11.00 percent and the 364-day bill at 12.94 percent.
At the secondary market on Tuesday, yields on the four tenors tracked during the session moved in different directions amid renewed squeeze in the financial system liquidity.
While yields on the one-month and the 12-month bills appreciated, yields on the three-month and six-month instruments depreciated at the close of transactions.
Yield on the 30-day tenor rose yesterday by 0.08 percent to 11.55 percent from 11.47 percent, while yield on the 364-day maturity increased by 0.51 percent to 14.79 percent from 14.28 percent. On the other hand, yield on the three-month bill declined by 0.26 percent to 11.97 percent from 12.23 percent, while yield on the six-month instrument depreciated by 0.08 percent to 12.49 percent from 12.57 percent.
Business Post reports that at the close of market on Tuesday, the average yields of treasury bills at the secondary market appreciated by 0.06 percent to settle at 12.70 percent.
