CBN Sells N844b Treasury Bills to Investors in Four Days

By Modupe Gbadeyanka

Treasury bills worth N843.89 billion were sold to investors this week by the Central Bank of Nigeria (CBN), Business Post is reporting.

The short-term sovereign debt securities issued by the apex bank on behalf of the Federal Government of Nigeria were sold during week via the primary and secondary markets.

The market resumed on Tuesday after the two-day public holiday declared by government last Friday and this Monday to mark Easter.

On Wednesday, the central bank sold T-bills worth N95.20 billion at the primary market with the 91-day bill worth N9.52 billion sold at 11.75 percent, the 182 -day instrument worth N17.60 billion auctioned at 12.70 percent, and the 364-day bill worth N68.08 billion traded at 13.04 percent.

Also, treasury bills worth N748.69 billion were sold by the nation’s chief lender via Open Market Operations.

During the week, precisely on Thursday, T-bills worth N528.90 billion matured at the market.

According to analysts at Cowry Asset, NIBOR fell for all tenor buckets amid FAAC inflows worth N647 billion: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets fell w -o -w to 4.56 percent from 7.6 percent, 14.64 percent from 14.85 percent, 15.28 percent from 16.01 percent and 17.06 percent from 17.79 percent respectively.

Elsewhere, NITTY fell for most maturities tracked on renewed bullish activity: yields on the 3 months, 6 months and 12 months maturities fell to 13.61 percent from 14.43 percent, 14.31 percent from 14.97 percent and 14.90 percent from 15.01 percent respectively.

However, yield on the 1 month maturities rose to 14.09 percent from 13.40 percent.

Meanwhile, Standing Lending Facility (SLF) fell w-o-w by 18.38 percent to N233.58 billion while Standing Deposit Facility (SOF) increased w-o-w by 276.32 percent to N618.20 billion; indicative of excess financial system liquidity.