CBN mops up N190bn through Primary Market Auction


The Central Bank of Nigeria will this week mop up N190.40 billion from the financial market through the auction of Primary Market Auction (PMA) instruments, as the Debt Management Office (DMO) prepares to raise more funds through the Federal Government Savings Bond next week.

The apex bank said it would conduct the PMA today, offering N190.4 billion across the 91, 182 and 364-day tenors. It is expected to raise N5.4 billion from the 91-day bill at 11.95 per cent.

The exercise will also see the auction of N26.9 billion through the 182- day bill at 13 per cent and N21.6 billion 364-day bill at 13.5 per cent

Last week, the CBN had refrained from its regular Open Market Operations (OMO) mop-ups with a decline in average yields as there was no OMO repayment of N11.67 billion and a PMA auction of N247.75 billion.

Meanwhile, the DMO will be raising funds through the two and three-year FGN Savings Bond between April 9 and 13, 2018. Last month, it had raised the bonds at yields slightly higher than the rate it sold in February. The DMO raised the two-year March 14, 2020 paper at 10.746 per cent and the three year March 14, 2021 paper at 11.746 per cent as against 10.277 and 11.277 per cent at which it raised the papers in February.

It had raised N235.02 million in February, N32.82 million through the two-year bond and N202.2 million through the three-year bond. The yields offered in February is lower than 12.098 per cent and 13.098 per cent which it paid on the two and three-year Savings Bond at the January auction.

The debt office in January raised N196.3 million through the Savings Bond which targets low income earners. It raised N73.05 million through the two-year paper and N123.25 million through the three-year paper.

Also, last year, the DMO had raised N7.3 billion through the savings bond in 2017 as investor appetite for the bond diminished in the fourth quarter of the year. Figures showed that in December 2017, N246.41 million was raised, the lowest figure for the year.


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