N153b Maturing T-Bills to Ease Financial System Liquidity

March 6, 2018
t-bills market

By Modupe Gbadeyanka

Treasury bills worth N153.93 billion maturing via the secondary market this week are expected to provide moderation in the interbank lending rates amid anticipated ease in financial system liquidity.

Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N129.99 billion via the primary market; viz 91-day bills worth N12.99 billion, 182-day bills worth N64.99 and 364-day bills worth N51.99 billion.

According to expectations of analysts at Cowry Asset, their respective stop rates fell to 11.85 percent from 11.95 percent, 13.49 percent from 13.65 percent and 13.50 percent from 13.70 percent.

Also last week, T-bills worth N526.49 billion were sold by the apex bank via Open Market Operations (OMO).

The outflows were partly offset by inflows worth N369.35 billion in matured treasury bills.

Hence, NIBOR for 6 months tenor bucket rose w-o-w to 18.35 percent from 18.30 percent.

However, NIBOR for overnight, 1 month and 3 months tenor buckets fell to 10.25 percent from 13.30 percent, 15.35 percent from 15.56 percent and 16.29 percent from 16.55 percent respectively.

Elsewhere, NITTY moved in mixed directions across maturities tracked; yields on the 6 months and 12 months maturities moderated to 15.25 percent from 15.37 percent and 15.04 percent from 15.35 percent respectively.

However, yields on the 1 month and 3 months maturities rose to 13.84 percent from 13.81 percent and 14.72 percent from 14.49 percent respectively.

Modupe Gbadeyanka

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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