By Dipo Olowookere
This week, treasury bills worth N234.32 billion will mature via both the primary and secondary markets.
This will be more than enough to offset treasury bills worth N53.96 billion to be auctioned by the Central Bank of Nigeria (CBN).
Consequently, market players are expecting moderation in interbank lending rates this week amid expected ease in financial system liquidity.
Last week, the central bank auctioned treasury bills worth N95.72 billion via the primary market; viz 91-day bills worth N6.22 billion, 182-day bills worth N4 billion and 364-day bills worth N85.50 billion.
Their respectively spot rates fell to 11.75 percent from 11.85 percent, 13 percent from 13.45 percent and 13.19 percent from 13.50 percent.
Also, T-bills worth N532.62 billion were sold via Open Market Operations (OMO) and the outflows were partly offset by inflows worth N453.30 billion in matured treasury bills.
Hence, NIBOR for overnight tenor bucket rose to 13.30 percent from 8.69 percent amid liquidity strain; however, NIBOR for 1 month, 3 months and 6 months tenor buckets fell w-o-w to 15.37 percent from 16.05 percent, 16.41 percent from 17.07 percent and 18.18 percent from 18.57 percent respectively.
Elsewhere, according to Cowry Asset, NITTY fell for all maturities tracked on buy pressure; yield on the 1 month, 3 months, 6 months and 12 months maturities moderated to 13.44 percent from 14.90 percent, 14.19 percent from 14.54 percent, 14.41 percent from 15.18 percent and 14.76 percent from 15.11 percent respectively.
Adedapo Adesanya