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CBN TO ISSUE N120BN TREASURY BILLS THIS WEEK

By NBF News
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As about N78 billion worth of maturities is expected in the system, the Central Bank of Nigeria (CBN) will this week issue N119.13 billion in 91-day, 182-day and 364-day treasury bills.

According to Reuters, the apex bank said it would issue N23.58 billion in 91-day bills, N45.55 billion in 182-day bills and N50 billion in one year paper using the Dutch Auction System (DAS).

Meanwhile, the inter-bank rates came down at the end of last week following the injection of federal civil servants employment benefits and arrears into the banking system by the Federal Government as well as the purchase and re-purchase of government securities by CBN.

According to FSDH in its Weekly Capital and Money Market Report, the seven-day NIBOR closed the week at 8.92 per cent, a 13 basis point increase from the previous week's figure of 8.79 per cent, while the 90-day NIBOR closed the week at 12.38 per cent, a 163 basis point increase from the previous week's figure of 10.75 per cent.

The company analyst expect a further fall in the inter-bank rates as about N78billion worth of maturities is to hit the system just as the Federation Account Allocation Committee (FAAC) is also expected to meet and disburse statutory allocation.

At the Open Market Operation (OMO) auction, a total of N124.90billion was injected into the system through the 2-way quote auction. The bills were bought at discount rates ranging from 4.50 per cent to 6.50 per cent. At the foreign exchange auction held on Monday, October 4, the CBN offered a total of $300million, while demand stood at $387.13million, representing 129.04 per cent of what was offered, while the total sale was same as the amount demanded.

On Wednesday, October 6, the CBN offered $300million; while demand stood at $457.53million, representing 152.51 per cent of what was offered, and the total sale was N438.53 billion. In all this week, a total of $600million was offered, while $825.67million was sold. The total sale stood at $825.67million, representing 97.75 per cent of what was demanded.

The value of the Naira appreciated at the inter-bank segment of the foreign exchange market, but remained stable at the official market segment of the foreign exchange market. At the inter-bank market segment, the Naira appreciated by 320 kobo to close at N151.30 per $1, compared to the previous week's figure of N154.50$1.

While, at the official market, the value of the Naira closed at N149.85/US$1, same as the previous week's figure. There was no data on the parallel market segment of the market as at the time of this report.