The Central Bank of Nigeria (CBN) on Wednesday 27 November 2019, further reduced stop rates of Tbills in the country at the primary market, in a bid to discourage tying down liquidity in government instruments to the detriment of the real sector of the economy, which desperately needs funds for growth.

Since the apex bank announced restricting local investors from participating in the Open Market Operations (OMO), the stop rates of T-bills, which remains open to them, have been on the downtrend. Despite continuous cut in the rates, appetite of investors for the investment tool has not waned, as witnessed at Wednesday’s primary market auction (PMA).

At Wednesday’s exercise, CBN took TBills worth N150.6 bn to the market in 3 tenors, but received subscriptions valued at N533.9 bn from market participants. It auctioned 91-day bills worth N24.37 bn, 182-D bills of N23.16 bn and 364-D bills of N103.07 bn; but when the results came out, investors staked N106.9 bn on the 91-D bills, N107.6 bn on 182-D, and N319.4 bn on the 364-D tenor. For the allotment, CBN sold N20.4 bn of the 91-D bills, N19.2 bn of 182-D and N111.1 bn of 364-D bills.

For the stop rates, the 3-month maturity cleared at 6.5%, lower than 7.8% at previous PMA; 6-month tenor cleared at 7.23% (vs 9.0% at the last exercise); while the 1-year instrument cleared at 8.37% (vs 10.0% at earlier auction two weeks ago). On average, stop rates of TBills issued today depreciated to 7.37% from 8.93%. Previous rates were earlier crashed from 10.48%.

SOURCE (abridged): https://businesspost.ng/economy/cbn-further-slashes-treasury-bills-rate-to-6-5/amp/

This Buhari government just dey stylishly hard for citizens ... People might soon hit the streets

It's not looking good �