By Dipo Olowookere
Treasury bills worth N397.72 billion will mature this week via the secondary market and according to Cowry Asset, this will boost liquidity given anticipated primary market auctions for bonds worth N115 billion.
Also, as a result of these expectations, the interbank rates at the money market will likely trend downwards during the week.
Last week, NIBOR rose for most tenor buckets tracked amid sustained financial system liquidity strain: with the overnight funds, 3 months and 6 months rising to 7.00 percent from 4.81 percent, 14.27 percent from 13.98 percent and 14.85 percent from 14.34 percent respectively; however, NIBOR for 1 month fell to 12.12 percent from 13.06 percent.
Meanwhile, NITTY rose for most maturities tracked amid sustained bearish activity: yields on 3 months, 6 months and 12 months maturities increased to 13.30 percent from 13.24 percent, 13.68 percent from 13.28 percent and 16.82 percent from 16.49 percent respectively; however, NITTY for 1 month fell to 10.95 percent from 12.24 percent.
Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N128.24 billion in the primary market.
The stop rates for the 91-day and 182-day auctioned T-bills moderated to 10.95 percent from 10.98 percent and 13.16 percent from 13.49 percent respectively; however, the stop rate for the 364-day maturity rose to 14.45 percent from 14.40 percent.
The apex bank also sold N450.52 billion in the secondary market, with the total outflows worth N578.76 billion offsetting the inflows from the matured T-bills worth N552.07 billion.
