By Dipo Olowookere
Treasury bills worth N444.30 billion are expected to mature this Thursday via the primary and secondary market.
This would be more than offset T-bills worth N66.68 billion to be refinanced by CBN via the primary market.
A breakdown of the exercise expected tomorrow showed that the apex bank will sell 91-day bills worth N5.39 billion, 182-day bills worth N20 billion and 364-day bills worth N41.29 billion.
“Hence, we expect renewed liquidity ease with resultant moderation in interbank rates,” analysts at Cowry Asset said.
Last week, the central bank rolled over treasury bills worth N180.86 billion via the primary market auction.
The stop rates for the auctioned T-bills all rose: the 91-day stop rate rose to 10.20 percent from 10 percent, the 182-day stop rate rose to 10.50 percent from 10.30 percent, while the 364-day stop rate rose to 11.50 percent from 11 percent.
Standing Deposit Facility (SDF) fell w-o-w by 83.19 percent to N123.8 billion; indicative of liquidity strain. In line with expectation, NIBOR rose for most tenor buckets amid renewed financial system liquidity strain: NIBOR for 1 month, 3 months and 6 months tenor buckets rose w-o-w to 14.37 percent from 13.54 percent, 14.67 percent from 13.95 percent and 16.49 percent from 14.84 percent respectively.
However, NIBOR for overnight tenor bucket moderated to 4.69 percent from 5.71 percent.
Elsewhere, NITTY moved in different directions across maturities tracked: yields on the 1 month and 12 months maturities rose to 12.47 percent from 12.35 percent and 13.38 percent from 13.32 percent respectively.
However, yields on the 3 months and 6 months dropped to 12.30 percent from 12.64 percent and 12.62 percent from 12.90 percent respectively.
Adedapo Adesanya