CBN to Offer N58b T-Bills to Investors at Today’s PMA

By Dipo Olowookere

Treasury bills worth N58 billion would be offered to traders via the at the primary market auction on Wednesday, April 18, 2018 (today).

The government instruments are expected to be sold at a reduced stop rate by the Central Bank of Nigeria (CBN).

The apex bank is planning to roll over the 91-day bill worth N6 billion, 182-day bill worth N29 billion and the 364-day bill worth N23 billion at the exercise today.

Business Post expects huge subscriptions on the 364-day instrument as market players take position to make up for the anticipated further drop in the stop rates.

Meanwhile, the T-bills market traded on a calmer note yesterday as market players relaxed their aggressive bullish stance from the previous session in anticipation of today’s PMA and a resumption in OMO on Thursday.

Analysts at Zedcrest Research expect the market to remain relatively calm on Wednesday as market players are now trading cautiously in anticipation of the much likely OMO auction.

In a related development, the money market rates marginally dropped yesterday as the system remained awash with liquidity at N470 billion positive.

Specifically, the Open Buy Back (OBB) fell to 2.08 percent from 2.33 percent, while the overnight rate closed at 2.63 percent in contrast to 3 percent on Monday.

The rates are expected to remain stable today ahead of the OMO auction by the central bank expected on Thursday.