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DMO records N197.03bn oversubscription on treasury bills


Image result wey dey for DMO records N197.03bn oversubscription on treasury billsThe Debt Management Office has recorded an oversubscription of N197.03bn on its Treasury bills auction of September 18, 2019.

The DMO offered N3bn, N8.39bn and N168.36bn across the 91-day, 182-day and 364-day tenors.

The 91-day tenor saw an oversubscription of 48.67 per cent as a total subscription of N44.46bn was recorded, compared to the N3bn offered.

The 182-day tenor was oversubscribed by N3.97bn as a total subscription of N12.36bn was recorded, compared to the N8.39bn offered.

Investors showed an increased appetite on the 364-day tenor they oversubscribed to it by 113.8 per cent.

The 364-day tenor saw a total subscription of N359.96bn, compared to the N168.36bn offered.

In all, the total subscription across all tenors stood at N376.78bn, total amount offered stood at N179.75 while the DMO allocated N179.75bn.

Last week, the treasury bills secondary market closed on bearish note as investors sold off to take position in the primary market and Open Market Operation auctions.

Consequently, average yield across all tenors advanced by eight basis points week-on-week to settle at 13.4 per cent.

Sell pressures were witnessed on the short- and mid- segments of the curve as average yield rose by five basis points and 39bps, respectively.

In a bid to curtail possible excess liquidity in the system as a result of expected high volume maturities, the Central Bank of Nigeria issued OMO bills last week.

At the OMO auction, a total of N300bn across the 91-day, 182-day and 364-day tenors was offered and due to low allotment at the Wednesday’s PMA, was an excess demand on the short-term and long-term bills.

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