Market Anticipates N452b Treasury Bills Maturing This Week

By Dipo Olowookere

This week, treasury bills worth N452 billion would be maturing at the secondary market. This would specifically happen on Thursday, August 9, 2018.

According to analysts at Cowry Asset, this is expected to cause ease in the financial system liquidity with resultant moderation in interbank rates.

Business Post reports that last week, the government instrument worth N539.95 billion matured via both the secondary and primary markets.

Also during the week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N215.63 billion via the primary market.

However, the stop rates for the auctioned T-bills declined for most maturities: the 182-day and 364-day stop rates moderated to 10.40 percent from 10.50 percent and 11.30 percent from 11.49 percent respectively, while the 91-day stop rate remained unchanged at 10 percent.

Furthermore, NIBOR for all tenor buckets moderated last week amid sustained financial liquidity ease.

The NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets fell w-o-w to 5.25 percent from 7.72 percent, 11.87 percent from 12.71 percent, 12.86 percent from 13.70 percent and 14.75 percent from 15.49 percent respectively.

Elsewhere, NITTY fell for most maturities tracked amid sustained bullish activity: yields on the 1 month, 6 months and 12 months maturities moderated to 10.20 percent from 10.68 percent, 12.31 percent from 12.58 percent and 12.64 percent from 12.89 percent respectively.

However, yield for 3 months rose to 11.20 percent from 11.15 percent.