The Central Bank of Nigeria (CBN) will on Wednesday, 17th January, 2018, auction Treasury bills with total value of N229 billion.
A breakdown of the coming T-Bills auction, showed that the apex bank will be conducting a T-bill auction on Wednesday, 17th of January, 2018, offering N10.25bn worth of 91-day bills, N26.60bn worth of N182-day bills and N193bn worth of 364-day bills.
The expected T-Bills sale· analysts maintained , would be a toast of the finance institutions and custodian investors, billed to benefit from the N96bn OMO maturity last week Thursday the 18th of January 2018, a fund injection that may not hedge the impact of the N229bn sales.
Activities in the last trading day of the week showed that the Open Buy-Back and Overnight rates jumped 167bps and 133bps to 9.00 per cent and 9.58 per cent, respectively, which may not be unconnected with CBN’s OMO auction.
The Apex bank last week sold N132bn worth of 76-day and 209-day bills at 12.60 per cent and 14.40 per cent stop rates, respectively, this was in addition to the Federal Government savings bonds (FGSB) January 2018 offer which closed last Friday.
Investors were largely bullish in the bond market last week with particular buy interest on the 5yr benchmark bond as the yield declined by 37bps to 13.03 per cent. Yields on the 7yr and 10yr benchmark bonds fell by -18bps and -17bps to 13.34 per cent and 13.17 per cent, respectively.
In the foreign Exchange Market, the Naira strengthened by +0.05 per cent w/w at the interbank market to close at N305.80 on Friday, as the Apex bank sustained its intervention in the FX market. On Monday, the CBN sold a total of USD210million to the various segments of the FX market.
Despite the mopping up of N424.99bn by the CBN through OMO auctions, the money market rates fell in the outgone week as Overnight rate shed -942bps to close at 9.58 per cent. The ease in rates may not be unconnected to the improvement in system liquidity through OMO maturity of about N309bn that hit the system on Thursday.