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Market Looks Forward to N136.4b Maturing T-Bills This Week

By Modupe Gbadeyanka

Treasury bills worth N136.39 billion are expected to mature this week through open market operations (OMO) and the primary market.

This is expected to provide a big boost in the financial system liquidity with resultant decline in interbank lending rates.

According to analysts at Cowry Asset, from the N136.39 billion worth maturing T-bills, N92.56 billion is expected from the OMO, while N43.84 billion is from the primary market.

Last week, interbank lending rates moderated on the back of boost in financial system liquidity as fixed income securities; T-bills and FGN bonds worth N158.56 billion matured.

However, there were no auctions of Treasury Bills to mop up excess liquidity.

NIBOR for overnight funds, 1 month, 3 months and 6 months tenor buckets fell w-o-w to 5.1 percent from 7.00 percent, 15.13 percent from 17.68 percent, 16.33 percent from 18.58 percent and 17.80 percent from 19.94 percent respectively.

Elsewhere, NITTY also fell for all maturities tracked following sustained buy pressure: yields on the 1 month, 3 months, 6 months and 12 months maturities declined to 11.01 percent from 14.86 percent, 11.55 percent from 15.37 percent, 13.22 percent from 16.05 percent and 12.85 percent from 15.94 percent respectively.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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