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The Central Bank of Nigeria (CBN) crashed average stop rates of treasury bills at the primary market to single-digit; to 8.93% from 10.48%, Business Post can report. As anticipated, the exercise was oversubscribed, as investors staked a total of N555.98 bn on the N125 bn T-bills brought to the market by the apex bank.
        CBN had offered investors N4.38 bn worth of 91-day bills, N12.92 bn of 182-day bills and N107.94 bn of 364-day bills. However, when subscriptions were analysed, the bank had N58.43 bn staked on the 3-month instrument, N57.85 bn on the 6-month and N439.70 bn on the 12-month tenor. At the end of the exercise, CBN allotted N4.38 bn of 91-day bills at 7.80%, N12.92 bn of 182-day bills at 9.00% and N107.94 bn of 364-day bills at 10.00%. When compared with previous session held October 30, 2019, stop rates of the 91-day bill dropped from 9.5%, the 182-day bill from 10.45% and the 364-day bill from 11.50%. Business Post reports that if the demand for treasury bills continue, stop rates would further be lowered by the central bank at the next exercise fixed for November 27, 2019. As stated in our earlier report, investors will continue to look at the primary market for treasury bills as a result of the recent directive of the CBN on the sale of its OMO bills. This will continue to drive the rates lower until there is an inevitable need for another hike to trap investors.