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.... ....   Home  |  Cover Stories  |  National Newsreel  |  Politics  |  Business  |  Sports  |  World  | Contact Towards a better life for the people Search The Archives   Cover Stories National News South West Niger Delta South East North Politics Business Sports World Viewpoints Features   ..... BUSINESS CBN slashes yield on TBs Stories by Babajide Komolafe Assist Business Editor Monday, November 01, 2004 The Central Bank of Nigeria (CBN) last week took advantage of an upsurge in demand to reduce interest rate on government   securities (treasury bills). Analysis of the result of conduct of auctions in government securities for the week, reveals a 100 percentage point reduction in   the true yield on the newly introduced six months instrument from 16.7353 per cent to 15.6159 per cent. Similarly the true yield   on the 91 days instrument was reduced by 50 per centage points from 14.5048 in the previous week to 13.9694 per cent. Total demand for government securities and the CBN treasury bond rose by 8.5 per cent to N198.044 billion from N182.459   billion in the previous week while total amount sold rose marginally to N116.790 billion from N116.450 billion. The increase in demand, according to money market operators reflects the robust liquidity condition of the market, a situation   occasioned by the influx of N289 billion statutory allocation fund released the previous week. This however deflated cost of    funds in the market, with interest rate on OBB (Open Buy Back) lending hovering between eight and nine per cent as against 17   percent before the influx of fund. The prevailing low cost of  funds, according to a top money market source increased   preference for investment in government securities which have higher returns. During the week total amount of bids received for the CBN treasury bond rose to N51.790 billion, up by 30 per cent, from   N39.7 billion in the previous ,week. Bids rates hovered between 11.5 per cent and 12.5 per cent while the stop rate stood at   12.5 per cent. The N5 billion worth of 182 days TBs on  offer was oversubscribed to the tune of N38.851 billion. Bid rates ranged from 14.49   per cent to 15.45 per cent while the stop rate stood at 14.49 per cent. On the other  hand, total public subscription to the N60   billion worth of 91 days TBs on offer stood at N107.403 billion. Bids rates ranged from 12.99 per cent to 14.5 per cent while   the stop rate was 13.5 per cent. Meanwhile the apex bank repaid N18.894 billion worth of  matured treasury bonds, and N42.901 billion worth of matured 91   days TBs.   Home  |  Cover Stories  |  National Newsreel  |  Politics  |  Business  |  Sports  |  World  | Contact © 1998-2004. Vanguard Media Ltd.

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