Rates to Spike as N177bn Treasury Bills Mature

By Modupe Gbadeyanka

Treasury bills worth N176.6 billion will this week mature via the Open Market Operations (OMO), Business Post is reporting.

According to analysts at Lagos-based Cowry Asset, interbank rates are expected to further spike amid anticipated strain in financial system liquidity in the absence of FAAC.

Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N475.92 billion through OMO to mop up matured bills worth N177.05 billion.

Hence, the net outflows resulted in strain in financial system liquidity and resultant increase in interbank lending rates.

The NIBOR for overnight funds, 1 month, 3 months, 6 months and 12 months tenure buckets revved to 11.65 percent from 4.78 percent, 12.80 percent from 10.81 percent, 13.80 percent from 11.96 percent and 14.46 percent from 11.96 percent respectively.

Elsewhere, NITTY fell for across maturities tracked amid renewed bearish activity, with yields on 1 month, 3 months, 6 months and 12 months maturity rising to 11.37 percent from 9.61 percent, 12.78 percent from 10.59 percent, 12.97 percent from 12.11 percent and 14.01 percent from 13.20 percent respectively.