Market Expects N552b Inflow as CBN Sells N128b T-Bills via PMA

By Modupe Gbadeyanka

This Thursday, treasury bills worth N552.07 billion will mature via the primary and secondary markets.

This will more than offset T-bills worth N128.24 billion to be auctioned by Central Bank of Nigeria (CBN) on Wednesday via the primary market.

During the anticipated PMA, the apex bank will offer to investors 91-day bills worth N3.38 billion, 182-day bills worth N16.92 billion and 364-day bills worth N107.94 billion.

“Hence, we expect liquidity ease in the financial system to be sustained with resultant moderation in interbank rates.

“We also expect stop rates to increase, especially for 364-day amid wider spread in yields between the primary and secondary markets,” analysts at Cowry Asset said.

Last week, the CBN auctioned treasury bills worth N316.23 billion via the secondary market.

The total outflows worth N316.23 billion was offset by the inflows from the matured T-bills worth N375.98 billion.

Hence, NIBOR for 6 months fell to 14.34 percent from 14.45 percent. However, NIBOR rose for most tenor buckets tracked amid renewed financial system liquidity strain: NIBOR for overnight, 1 month and 3 months rose to 4.81 percent from 4.42 percent, 13.07 percent from 12.07 percent and 13.98 percent from 13.49 percent respectively.

Meanwhile, NITTY rose for most maturities tracked amid renewed sell pressure: yields on 1 months, 3 months and 12 months maturities increased to 12.25 percent from 10.43 percent, 13.24 percent from 12.37 percent and 16.50 percent from 16.49 percent respectively;

However, NITTY for 6 months moderated to 13.28 percent from 13.34 percent.