297-Day Bills Worth N181.01b Mature Next Week

**As CBN Sells N135.73b T-Bills in 5 Days

By Cowry Asset

Next week, 297-day bills worth N181.01 billion will mature, a development expected to result into a boost in financial system liquidity and resultant moderation in interbank rates.

During this week, the Central Bank of Nigeria (CBN) sold Treasury Bills (T-Bills) worth N135.73 billion via primary market and Open Market Operations (OMO).

Primary market auctions included 91-day bills worth N6.09 billion (Stop Rate, SR remained at 13.10 percent), 182-day bills worth N6.70 billion (SR fell to 15.28 percent from 15.30 percent) and 364-day bills worth N88.04 billion (SR rose to 15.60 percent from 15.59 percent).

The outflow was offset by matured T-Bills worth N96.27 billion via primary market and OMO along with residual FAAC inflows.

In line with our expectations, NIBOR moderated for virtually all tenor buckets: 1 month tenor, 3 months and 6 months tenor buckets fell w-o-w to 19.98 percent (from 20.57 percent), 20.85 percent (from 22.28 percent) and 22.69 percent ( from 23.76 percent) respectively.

However, Overnight funds rate increased w-o-w to 40.18 percent (from 19.71 percent).

Elsewhere, NITTY fell for most maturities amid liquidity ease: yields on the 1 month, 3 months, 6 months and 12 months maturities moderated w-o-w to 18.79 percent (from 20.07 percent), 18.17 percent (from 19.26 percent), 18.81 percent (from 19.22 percent) and 17.91 percent (from 18.21 percent) respectively.