Rates to Moderate on N232.37b Inflows

By Modupe Gbadeyanka

This week, the interbank rates are expected to stabilise as the market anticipate the maturing of treasury bills worth N232.37 billion via the primary and secondary market.

This will more than offset T-bills worth N182.14 billion to be auctioned by Central Bank of Nigeria (CBN) on Wednesday via the primary market.

During the exercise, the apex bank will offer to investors 91-day bills worth N5.39 billion, 182-day bills worth N8.39 billion and 364-day bills worth N168.36 billion.

According to analysts at Cowry Asset, this is expected to bring about liquidity ease in the financial system if the CBN does not aggressively mop up liquidity via OMO sales.

Last week, CBN auctioned treasury bills worth N136.31 billion via the Primary Market. The stop rates for the auctioned T-bills were mostly flattish: the 91-day and 182-day stayed flat at 11 percent and 12.30 percent respectively, while the 364-day rose to 13.50 percent.

The outflows were offset by N376.88 billion in matured T-bills.

However, liquidity in the system was strained. Hence, NIBOR rose for all tenor buckets tracked amid sustained financial system liquidity ease: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets jumped to 13.79 percent from 3.25 percent, 14.86 percent from 11.86 percent, 15.26 percent from 12.76 percent and 15.79 percent from 14.07 percent respectively.

Elsewhere, NITTY rose for all maturities tracked on bearish sentiment: yields on 1 month, 3 months 6 months and 12 months maturities rose to 14.07 percent from 11.38 percent, 14.21 percent from 12.25 percent, 13.89 percent from 13.08 percent and 15.42 percent from 13.71 percent respectively.