Investors Anticipate Inflows of N372.9b in Maturing T-Bills

By Modupe Gbadeyanka

Investors in the Nigerian treasury bills market would be expecting the debt instrument worth N372.88 billion to maturing via the secondary market this week.

These inflows would be expected to moderate the interbank rates at the money market during the trading week.

Also, the N372.88 billion maturing treasury bills should sufficiently sustain liquidity given anticipated primary auctions for bonds, analysts at the Lagos-based investment company, Cowry Asset, said in their weekly report.

Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N147.63 billion via the primary market.

In line with expectations, the stop rate for the 91-day, 182-day and 364-day bills increased to 10.96 from 11.00 percent, to 12.69 percent from 12.09 percent, and to 13.45 percent from 13.33 percent respectively.

During the week, the apex bank also auctioned N275.34 billion worth of T-bills via Open Market Operations (OMO).

The outflows worth N422.97 billion were offset by the inflows from the matured T-bills worth N494.76 billion.

Hence, NIBOR moderated for all tenor buckets amid sustained financial system liquidity ease: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets declined to 13.15 percent from 22.22 percent, 13.98 percent from 14.34 percent, 13.95 percent from 14.37 percent and 14.72 percent from 15.14 percent respectively.

Meanwhile, NITTY rose for most maturities tracked amid sustained sell pressure: yields on 1 month, 3 months, 6 months and 12 months maturities rose to 13.41 percent from 13.01 percent, 12.89 percent from 12.69 percent, to 13.35 percent from 13.10 percent and 15.79 percent from 15.12 percent respectively.