Treasury bills rate to trend lower on N232.3bn OMO maturities

THERE are expectations that Treasury bill rates will trend lower on liquidity inflows in to the system last week as well as expected Open Market Operations (OMO) maturities worth ?232.3 billion which will hit the system this week.

Meanwhile, market participants expect the Central Bank of Nigeria (CBN) to continue its liquidity mop-up via OMO sales.

Meanwhile, the CBN conducted an OMO auction worth ?500.0billion on Thursday. As a result of the relatively attractive yields at the auctions, there was strong investor interest in the 362-day instrument (Offer: ?350.0 billion; Subscription: ?534.9 billion; Sale: ?476.4 billion) which was oversubscribed at 1.5x.

Conversely, the 89-day (Offer: ?20.0bn; Subscription: ?8.9 billion; Sale: ?3.1 billion) and 180-day (Offer: ?30.0 billion; Subscription: ?1.4 billion; Sale: ?0.5 billion) instruments were grossly undersubscribed at 0.4x and 0.1x respectively. The OMO instruments were issued at marginal rates of 11.44 per cent (89-day), 11.56 per cent (180-day) and 13.00 per cent (362-day).

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