The further lowering of stop rates of NTBs at the primary market continued on Wedn 11 Dec, 2019 when the Central Bank of Nigeria (CBN) auctioned N45 billion worth of the debt instruments to investors. Results of the exercise showed that the T-bills were offered for as low as 5% by the CBN.

CBN offered N5 bn worth of the 91-day instrument, N10 bn worth of the 182-D and N30 bn worth of 364-D. However, subscribers staked N53.9 bn on the 3-month tenor, N46.3 bn on the 6-month, and N192.4 bn on the one-year tenor, giving the total amount of subscriptions at N292.6 bn, N247.6 bn higher than the amount auctioned.

For the allotment, CBN sold N1.8 bn worth of the 91-day, N4.5 bn worth of 182-D and N38.7 bn of 364-D bills. For stop rates, the 91-D instrument cleared at 5%, lower than 6.40% at the previous session; the 182-D tenor was sold at 6.19%, vs 7.20% at the last PMA; while the 364-D maturity was allotted at 6.88%, vs 9.37%.

This left the average rate at Wednesday’s exercise at 6.02%, lower than 7.66% of the previous primary market auction. It is not certain how low the central bank would go in the cutting of treasury bills stop rates. Next week, another PMA would be conducted and observers believe the rates might still go lower. They are of the opinion that a raise would definitely occur next year at a point in time.

Since the CBN stopped local investors from buying its own liquidity management tool, the OMO bills, it has significantly reduced stop rates of treasury bills at the primary, which is still open for the restricted groups to purchase. However, the OMO bills rates have remained at double digits; still as high at over 13%.

SOURCE (abridged): https://businesspost.ng/economy/cbn-sells-treasury-bills-at-5-at-wednesdays-auction/amp/

Everything Buhari touches turns to gold goat

Oya start blaming the previous government... Idiots!