CBN to Sell N33.4b Fresh T-Bills to Partly Offset N473b Inflows

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) will on Wednesday conduct the sale of fresh treasury bills worth N33.38 billion.

This will partly offset the maturing treasury bills worth N473.40 billion, analysts at Cowry Asset disclosed in their weekly report.

During the proposed exercise via the primary market, the apex bank will sell 91-day bills worth N3.38

billion, 182-day bills worth N10.00 billion and 364-day bills worth N20 billion.

The stop rates are expected to inch higher for all maturities amid heightened political uncertainty in the country this week.

“Although CBN will be poised to mop up excess liquidity via OMO sales, we expect ease in the financial system liquidity to be sustained with resultant moderation in interbank rates,” Cowry Asset said.

Last week, the CBN auctioned treasury bills worth N377.06 billion at the secondary market.

The outflows were offset by N452 billion in matured T-bills; Indicative of liquidity surplus. In line with expectation, NIBOR moderated for most tenor buckets amid sustained financial liquidity ease: 1 month, 3 months and 6 months tenor buckets fell w-o-w to, 11.31 percent from 11.87 percent, 12.44 percent from 12.86 percent and 13.80 percent from 14.75 percent respectively; however, overnight funds rate rose to 8.9 percent from 5.25 percent.

Elsewhere, NITTY rose for all maturities tracked amid sustained sell pressure, especially from the foreign portfolio investors: yields on the 1 month, 3 months, 6 months and 12 months maturities increased to 10.24 percent from 10.20 percent, 11.36 percent from 11.20 percent, 12.77 percent from 12.31 percent and 12.76 percent from 12.64 percent respectively.