CBN Sells Only N41billion OMO Bills As Investors Shun Auction

Date:

The sale of treasury bills by the Central Bank of Nigeria, CBN, via Open Market Operations, OMO, suffered a snag last week Thursday as most investors stayed back from the exercise.

Thank you for reading this post, don't forget to subscribe!

The apex bank recorded an abysmal sale of N41 billion of the N300 billion worth of the OMO bills offered for sale.

Out of the N50 billion offered for the 112-day bill, the CBN could only net 60 million at 11.05 percent, while it sold N40.89 billion from the N250 billion worth of the 182-day instrument at 12.15 percent.

At the close of transactions, the T-bills market traded with mixed sentiments with yields closing lower. Meanwhile, the money market rates dropped on Thursday with the overnight rate closing at 13.71 percent from 24.67 percent in the previous session.

Also, the Open Buy Back (OBB) rate went down to 13.33 percent yesterday from 23.33 percent in the last session.

According to analysts at Zedcrest Research, this came on the back of inflows from OMO T-bills and Net PMA repayments of about N296 billion, which helped bolster system liquidity to a net positive position of about N180 billion positive.

“We expect rates to maintain a downtrend tomorrow, as there are no significant outflows expected,” the investment research outfit stated.

The sale of treasury bills by the Central Bank of Nigeria, CBN, via Open Market Operations, OMO, suffered a snag last week Thursday as most investors stayed back from the exercise.

The apex bank recorded an abysmal sale of N41 billion of the N300 billion worth of the OMO bills offered for sale.

Out of the N50 billion offered for the 112-day bill, the CBN could only net 60 million at 11.05 percent, while it sold N40.89 billion from the N250 billion worth of the 182-day instrument at 12.15 percent.

At the close of transactions, the T-bills market traded with mixed sentiments with yields closing lower. Meanwhile, the money market rates dropped on Thursday with the overnight rate closing at 13.71 percent from 24.67 percent in the previous session.

Also, the Open Buy Back (OBB) rate went down to 13.33 percent yesterday from 23.33 percent in the last session.

According to analysts at Zedcrest Research, this came on the back of inflows from OMO T-bills and Net PMA repayments of about N296 billion, which helped bolster system liquidity to a net positive position of about N180 billion positive.

“We expect rates to maintain a downtrend tomorrow, as there are no significant outflows expected,” the investment research outfit stated.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

Share post:

Subscribe

Popular

More like this
Related

Nigeria’s Access Holding eyes $1.5 bln share or bond sale

ABUJA, March 28 - Nigeria's Access Holding Plc (ACCESSCORP.LG),...

“AfDB Invests $75 Million in Indorama for Fertilizer Expansion”

The African Development Bank has inked a $75 million...

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading