CBN Slashes Rates on Nigerian Treasury Bills
With substantial subscription records, the Central Bank of Nigeria (CBN) has further crashed spot rates on Nigerian Treasury bills (NTB) it rolled over midweek when it conducted its primary market auction, results showed.
MarketForces Africa reported that the apex bank would roll over matured Treasury bills worth N141.94 via the primary market auction sales split into 91-day bills worth N3.15 billion, 182-day bills worth N1.49 billion, and 364-day bills worth N137.30 billion.
Its auction result showed that the stop rates for the 91-day Treasury bills declined by a basis point to 2.86%. Also, the apex bank crashed spot rate on 182-day 87 basis points to 3.50% and the 364-day tenor dropped to 5.94% from 6.23% at the previous auction
With a significant demand record, the monetary authority allotted N141.76 billion out of N691.85 billion subscribed by market participants on Wednesday.
Fixed income analysts Cowry Asset Management Limited said in a market update that subscription or demand improved – indicated by a 4.88x bid-to-cover ratio, a moderate surge from 4.03x reported in the previous outing amidst robust liquidity.
Funding rates increased as signs that market liquidity pressures could return so fast and perhaps more furious than the market has seen in the past. System liquidity increased to ₦753.66 billion from ₦745.32 billion on Tuesday, according to Futureview Financial Services.
Money market data showed that short-term benchmark rates such as the open repo rate and the overnight lending rate, increased to 0.93% (from 0.86%) and 1.33% (from 1.25%), respectively.
In the secondary market, trading activities on Nigerian Treasury bills closed flattish as market players shifted attention to the midweek auction of the CBN. As a result, the average yield was unchanged at 6.3%. > Nigerian Treasury Bills Yield Rises to 7%
#CBN Slashes Rates on Nigerian Treasury Bills
