Yields on Nigeria Treasury Bills fall further as DMO sells N101 bln debt
The Central Bank of Nigeria (CBN) on Wednesday sold a total of N101.03 billion worth of Treasury Bills at an auction with yields on the paper declining further than they were at the previous auction.
Yields on the local debt fell to 3.35 percent from 3.39 percent on the 1-year Treasury bills, while rate for 3-month debt came down to 1.30 percent from 1.78 percent previously and 1.80 percent on the 6-month paper against 1.91 percent at the last auction.
Results of the auction released by the Debt Management Office (DMO) showed that a total of N71.59 billion worth of the bill was sold to investors who indicated to buy up to N98.39 billion worth of the 1-year paper.
The debt office also sold N26.60 billion worth of the 6-month paper against N63.05 billion subscription at the auction while a total of N8.84 billion of the 3-month paper was sold compared with N27.68 billion worth of subscriptions received.
Traders had projected increase demand at the auction as a result of a surge in liquidity in the money market from retired mature bills.
However, the amount sold was fell short of the actual proposed offering at the auction and the amount that ought to be rolled over.
Meanwhile, as a result of the inability of the DMO to absorb all request at its auction, money market rate fell across the board with Overnight placement dipped 2.13 percent to close at 10.79 percent while Open Buy Back (OBB) fell 1.83 percent to 10 percent at the close of Market.