CBN Slightly Cuts Stop Rates of Treasury Bills at PMA

By Dipo Olowookere

Treasury bills worth N17.6 billion were offered for sale to investors in the country yesterday by the Central Bank of Nigeria (CBN), which rolled over the debt instrument.

However, Business Post observed that subscriptions valued at N133 billion were received by the apex bank from market players.

Another observation was that during the exercise, the central bank trimmed the stop rates of the three maturities it auctioned; 91-day, 182-day and 364-day bills.

While the stop rate for the 91-day instrument was cut to 9.60 percent from 10.00 percent, the 182-day bill was trimmed to 11.89 percent 11.95 percent, with the 364-day tenor reduced to 12.02 percent from 12.34 percent.

An analysis of the exercise, a primary market auction (PMA), showed that of the N3 billion worth of the 91-day bill auctioned, the CBN received offers worth N3.27 billion from investors, but N3 billion was eventually allotted.

For the 182-day instrument, the bank had subscriptions worth N12.53 billion from market players, with N4 billion allocated.

Of the N10.61 billion worth of the 364-day treasury bills offered for sale at the Wednesday’s PMA, the CBN received subscriptions valued at N117.20 billion, but N10.61 billion was allotted at the end of the day.

According to Cowry Asset, “We expect the bullish sentiments to remain in the treasury bills market as OMO maturities of N89 billion hit the space on Thursday.”

Meanwhile, the OBB and OVN rates closed the session lower at 6.86 percent and 7.50 percent respectively as system liquidity closed at N217 billion positive.

The rates are expected to moderate later in the week, with N89 billion expected in OMO maturities this week, with an outside chance for the apex bank to mop-up maturities with an OMO auction.

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

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