Treasury bills worth N128 million were auctioned by the Central Bank of Nigeria (CBN) on Wednesday through the primary market auction (PMA). However, when the bids were analysed, it was observed that subscribers staked N262bn on the debt instrument, representing a subscription level of 205%.

This has been the situation with sale of T-bills in the country for a long time, with more liquidity chasing the investment tool as investors look for where to put their funds. This situation has led to significant decline in rates and yields, and as Business Post observed, CBN further trimmed the stop rates yesterday.

Analysis showed that CBN offered N4.4bn worth of 91-day bill, N14.0bn of 182-day bill and N109.7bn of 364-day. But market participants bid N8.6bn for the 3-month bill, N22.9bn for the 6-month and N230.9bn for the 12-month instrument. Though the apex bank allotted exactly what it auctioned for the respective maturities, it trimmed stop rates for the 3 tenors. Stop rate for the 91-day bill was lowered to 1.10% from 1.14%, the 182-day bill was dropped to 1.55% from 1.80%, while the 364-day bill was cut to 3.05% from 3.34%.

The situation on Wednesday has made observers project that treasury bills would soon be sold at a stop rate below 1%. “With the way things are going, CBN will sell treasury bills to investors at an interest rate lower than 1%,” an economist based in Lagos, Mr Sunday Aderibigbe, told Business Post.

“What is happening at the market at the moment is that the investors are practically begging CBN to take their money for free, which should not be so. The reason is that there is much liquidity in the space and if this continues, my projection will be a reality in a very short time,” Mr Aderibigbe added.

SOURCE (abridged): https://businesspost.ng/economy/rate-drops-to-1-10-as-investors-beg-cbn-with-n262bn-for-n128bn-t-bills/amp/

I saw this on my I INVEST APP to invest my little savings for next 6 months. Last year that I checked last was 12% increment per annum. Now I saw 3.3% per annum and some ridiculous rates.. All I could do at the particular moment was to smile to myself tland concluded that Nigeria is already finished.

Chaii, gone are the days when TB is the main source of most people's passive income, but now TB is more like hiding your money under a rock, with no hope of multiplying.

How on earth are we going to escape this financial predicament in this country, when every economic indices are going negative with the speed of the wind.......No jobs, bad and harsh policies from the government, very bad and over bearing environment that kills businesses even before they start.

The TB that i normally used as back up and sure income has finally crashed to the ground, may God help us all.

bettermandate80:
Chaii, gone are the days when TB is the main source of most people's passive income, but now TB is more like hiding your money under a rock, with no hope of multiplying.

How on earth are we going to escape this financial predicament in this country, when every economic indices are going negative with the speed of the wind.......No jobs, bad and harsh policies from the government, very bad and over bearing environment that kills businesses even before they start.

The TB that i normally used as back up and sure income has finally crashed to the ground, may God help us all.

did u vote for buharis,change

From a shallow, ephemeral and rent-seeking perspective, this is bad news.

However, from a long-term economic development perspective, this is really great news!

Guys you can also invest with Samtos Global Company,they are into Forex trading,IT solutions,Agriculture. and Forex academy.
They give 40% ROI every month and have been consistent with paying.

Try them today, visit www.samtosglobal.com

Or call Bisi on 09094980531

delawal:

did u vote for buharis,change

God forbid, I'm not that stupid