N786.4b T-Bills Mature as Analysts Predict Rise in Rates

**CBN to Auction Fresh N225.5b T-Bills

By Modupe Gbadeyanka

Treasury bills worth N786.37 billion will mature this week via the primary and secondary markets, analysts at Cowry Asset have said.

This, they wrote in their weekly report, will more than offset the sale of fresh treasury bills worth N225.45 at the primary market by the Central Bank of Nigeria (CBN).

This exercise will take place on Wednesday and the apex bank will offer to investors the 91-day bills worth N5.85 billion, 182-day bills worth N26.60 billion and 364-day bills worth N193.00 billion.

During the trading week, liquidity ease in the financial system is expected to be sustained with resultant moderation in interbank rates.

The stop rates are anticipated to increase, especially at the short end as investors continue to tread cautiously ahead of February 16, Presidential election.

Last week, treasury bills worth N375.35 billion matured via the secondary market which were partly offset by auctioned T-bills worth N308.24 billion through Open Market Operations (OMO).

The net inflow resulted in financial system liquidity ease in line with expectation.

Hence, NIBOR for overnight funds, 1-month and 3-month tenure buckets moderated to 21.88 percent from 22.04 percent, 15.55 percent from 16.02 percent and 13.81 percent from 13.89 percent respectively.

However, NIBOR for 6 months tenure bucket increased to 15.52 percent from 14.85 percent. Meanwhile, NITTY fell for most maturities tracked amid renewed bullish activity. While yields on 1 month, 3 months and 12 months rose to 14.91 percent from 15.71 percent, 11.30 percent from 12.58 percent and 17.32 percent from 17.34 percent respectively, yield on the 6 months maturity rose to 14.63 percent from 13.35 percent.