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CBN Sells N223b OMO Bills to Refinance Maturing T-Bills

By Dipo Olowookere

Last week, treasury bills worth N226.68 billion were sold by the Central Bank of Nigeria (CBN) via the Open Market Operations (OMO) to refinace the matured T-bills worth N226.68 billion.

As a result, according to analysts at Cowry Asset, NIBOR for all tenor buckets rose on renewed liquidity strain: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets rose w-o-w to 3.59% (from 3.38%), 12.05% (from 11.31%), 14.00% (from 12.57%) and 15.84% (from 13.56%) respectively.

Elsewhere, NITTY rose for most maturities tracked on renewed sell pressure: yields on the 1 month, 3 months and 6 months maturities rose to 8.68% (from 8.16%), 10.92% (from 10.01%) and 11.55% (from 11.15%) respectively; however, yield on the 12 months maturity fell to 12.62% (from 12.90%) respectively.

Meanwhile, Standing Deposit Facility (SDF) worth N735.43 billion outweighed, Standing Lending Facility (SLF) worth N289.21 billion.

This week, T-bills worth N371.83 billion will mature via both the primary and secondary market while N626.8 billion that will be disburbed by Federation Account allocation Committee (FAAC) should boost liquidity; hence, we expect ease in financial system liquidity with accompanying moderation in interbank rate.

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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.

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