Investors apathy plunges treasury bills by 70%
By Sunny Obidegbo
IN an apparent to last week's patronage of the weekly government security auction of both windows of the Treasury bill market by investors, the sales volume plunged by 70.9 per cent.
According to market operators, the low sales were not unconnected to the low return on the investment by investor, which they regarded as unimpressive.
Result of the conduct of the week under review showed that the public subscription of the 91 day tenured instrument of the primary market segment plunged by N34.469 billion representing 39 per cent, out of which N35 billion offered by the apex bank were all successful purchased at the time yield of 15.7884 per cent.
While range of bid rates moved between 12.99 per cent and 16 per cent, the successful bid rates hovered between 12.99 per cent and 15.19 per cent.
On the other hand, CBN repaid N23.121 billion worth of matured bill, putting the net stake of the instrument at N11.879 billion.
At the secondary section, of the market, popularly called Open Market Operations (OMO), total amount of amount sold stood at N300 million, a far cry from the previous week figure of N33.314 billion, the last week's figure sold decreased by N33.014 representing 99 per cent.
The low patronage mostly affected the 49 day tenured OMO, due to the reduced true yield from 15 per cent of the previous week to 12.7136 per cent in the last week.
Although the range of bid rate was not disclosed but the issue rate stood at 12.5 per cent.
The total amount repaid stood at N33.380 billion, putting the net sales at N33.080 billion.